- Nigerian government denies $10B Binance fine amidst crypto crackdown.
- Regulatory scrutiny intensifies; Binance removes naira from P2P service.
In a tightening regulatory landscape for cryptocurrency exchanges in Nigeria, the government has refuted recent speculation surrounding a purported $10 billion fine on Binance. Bayo Onanuga, a special adviser to the Nigerian president on information and strategy, dismissed the allegations reported by the BBC as a misquotation.
According to a report by the People’s Gazette, Onanuga clarified that his words were misrepresented and emphasized that there hasn’t been a definitive decision to fine Binance. He stressed that he did not assert that Binance was informed about any fines or that the penalty would amount to $10 billion, highlighting that the possibility of a fine was merely discussed and nothing has been finalized yet.
Comprehensive View
The refutation comes amidst a broader crackdown on cryptocurrency exchanges in Nigeria, with several platforms recently banned to safeguard the country’s national currency, the Nigerian naira. Binance, a major player in the crypto space, removed the naira from its peer-to-peer (P2P) service on Wednesday, Feb. 28, aligning with the regulatory climate.
The P2P feature, which allows users to trade directly without involving a third party, gained popularity in Nigeria following the government’s ban on its thriving crypto industry during the administration of former President Muhammadu Buhari.
Binance has come under increased scrutiny in Nigeria, with the Central Bank of Nigeria (CBN) expressing concerns about “suspicious flows” of funds through the exchange’s Nigerian arm in 2023. CBN Governor Olayemi Cardoso highlighted that $26 billion had passed through Nigeria via Binance in 2023 from unidentified sources and users.
Further complicating matters, the National Security Adviser’s office reportedly detained two senior Binance officials in the Nigerian capital, Abuja, as part of efforts to crackdown on cryptocurrency exchanges and curb speculation about the naira.
