BREAKING: Reactions as Nigerian Govt Slams Binance with Heavy Fine

The Nigerian Government has imposed a staggering $10 billion fine on a leading global cryptocurrency trading platform, Binance.

This development was confirmed by Bayo Onanuga, Special Adviser on Information and Strategy to President Bola Tinubu, in a recent BBC interview.

The fine is a direct response to what the Nigerian authorities describe as Binance’s unauthorized financial activities within the country, which they believe have significantly contributed to the recent devaluation of the Naira.

According to Onanuga, Binance’s operation in setting exchange rates independently of the Central Bank of Nigeria (CBN) is deemed illegal, as the CBN holds the exclusive right to determine the country’s financial exchange rates.

Onanuga highlighted the government’s concerns over Binance’s platform, suggesting it serves as a hub for individuals manipulating the exchange rate, thereby adversely impacting Nigeria’s economy during a critical period of stabilization efforts. He further noted that Binance staff had cooperated with the government, providing essential information during the investigation.

In response to the government’s crackdown, Binance has removed the Naira from its peer-to-peer (P2P) trading feature, which facilitates direct transactions between users without intermediary involvement.
This action underscores the platform’s significant influence on foreign exchange rates and its potential to disrupt the Nigerian economy, as emphasized by Onanuga.

The situation escalated with the detention of two Binance employees by the National Security Adviser, Nuhu Ribadu, as part of a broader inquiry into the cryptocurrency exchange’s operations within Nigeria.
This move aims to address naira speculation and mitigate the currency’s depreciation by scrutinizing cryptocurrency exchanges.

Amidst these developments, the Governor of the Central Bank of Nigeria, Olayemi Cardoso, revealed that Binance Nigeria facilitated transactions totaling $26 billion in one year, involving unknown sources and users.
This revelation came during the apex bank’s Monetary Policy Committee meeting, highlighting the government’s resolve to curb illicit financial flows and protect the integrity of the Nigerian market from potential manipulations.