FG Slams Binance With $10bn Fine

In a seismic development, the Nigerian government has delivered a staggering $10 billion blow to Binance, a leading cryptocurrency exchange platform, accusing it of exacerbating the country’s forex crisis. The revelation comes straight from the horse’s mouth, with Bayo Onanuga, Special Adviser to President Bola Tinubu on Information and Strategy, breaking the news in an exclusive interview with the BBC.

Onanuga dropped the bombshell, asserting that Binance raked in substantial profits through what he dubbed “illegal transactions” in Nigeria, leaving the nation reeling from colossal losses. The heart of the matter, according to Onanuga, lies in Binance’s unregistered status in Nigeria and its glaring absence in the country’s regulatory framework. He pointed fingers at users manipulating dollar-naira rates on the platform, a practice he claims wreaked havoc on the value of the local currency.

“Binance is not registered in Nigeria, yet it engages in these activities that have adverse effects on our economy,” emphasized Onanuga, adding that the platform unilaterally determined exchange rates within the country—an act deemed illegal without the endorsement of the Central Bank of Nigeria.

In a surprising turn of events, Onanuga revealed that Binance is not turning a blind eye to the government’s concerns. The platform is said to be actively cooperating, providing vital information and taking immediate action by suspending naira-related transactions on its platform.

“The platform fixes the exchange rate in Nigeria, which is illegal. The Central Bank of Nigeria is the only authority that can fix the exchange rate for Nigeria. Binance harbors a lot of people who fix exchange rates, impacting the country badly at a time when the government is trying to stabilize the economy,” explained Onanuga, pulling back the curtain on the alleged malpractices.

Furthermore, the Office of the National Security Adviser (ONSA) confirmed on Friday that Nigerian authorities are intensifying their probe into Binance’s activities, signaling a potential legal storm for the cryptocurrency giant. The allegations of currency speculations leading to a drastic 70% fall in the Naira’s value in recent months hang ominously over Binance’s reputation.

As the investigation unfolds, the crypto world watches with bated breath, and the financial landscape in Nigeria braces for potential aftershocks. Stay tuned for more updates on this unprecedented clash between regulatory forces and the cryptocurrency juggernaut. 🚀💸