One of the major developing stories in the crypto industry is Binance and the Nigerian government. So, two Binance employees received detention upon entering the country’s capital. Apparently, the issue was that Binance was operating illegally in the country. Furthermore, there were also accusations of illegal setting of exchange rates. Thus, continue reading as we provide comprehensive details of what really happened. Let’s dive in!
Binance vs Nigerian Government: The Issues
Since the election of the Bola Tinubu administration, many things have yet to go well in Nigeria. Apparently, Binance was one of the organizations receiving the blame for the leadership issues in the country. Reports show the arrest of two Binance executives flying into Nigeria. The reason for their arrest was that Binance was a major contributor to the decline of the naira.
The government alleged that Binance wasn’t even registered to operate in the country. Furthermore, they spearheaded the widespread economic disruption and depreciation of the naira. Apparently, the naira has seen more than 70% devaluation since the Tinubu administration took over.
Binance Involved in Over $26 Billion Illegal Trading
There was another allegation directly from the Nigerian central bank Governor, Olayemi Cardoso. So, he said that the largest crypto exchange, Binance, enabled $26 billion of untraceable funds. He said this was one of the things contributing to the foreign exchange problems the country is facing. Furthermore, they pinpointed the Binance peer-to-peer (P2P) feature as the major enabler of this issue.
Moreover, one of their conclusions was that money launderers used Binance for their activities. Furthermore, the massive currency (naira-dollar) speculation at the crypto exchange was the cause of many economic issues.
Binance to Pay $10 Billion Fine
One of the major developments of this case was the alleged fine of $10 billion on Binance. So, Bayo Onanuga, a spokesperson for President Bola Tinubu, told the BBC’s pidgin language service that Binance will pay $10B. The reason for this fine was due to the illegal operations of the crypto exchange in the country. Furthermore, he accused Binance of setting exchange rates in the country instead of the central bank.
However, the same spokesperson denied this claim. So, he alleged his statement was not interpreted correctly by the media. “I never said Binance had been informed about the fines or that it would definitely be $10 billion,” Onanuga said.
Settling the Differences
Binance spokesperson already said they won’t be paying any fines to the Nigerian government. However, they said Binance is open to cooperating with the Nigerian government to restore their P2P services. “Our aim is to chart a good relationship with the government and the people of Nigeria. We want to see our services restored in Nigeria very soon, but we have no intention of paying fines for personnel or services,” Binance said.
One of the major things that might happen is stringent regulations on Binance. Already, the Nigerian government demands that Binance should present certain documents before it can operate legally in the country.
Wrapping Up
It is already clear that the Nigerian government is not happy with Binance’s operations in the country. So, the detained Binance executives are a serious indication of the hotheadedness of the Nigerian government. However, Binance clearly indicates they are not ready to pay any fine imposed by the Nigerian government. They are only open to cooperating in order to operate legally in the country.
The information provided in this article is for informational purposes only and should not be considered financial advice. The article does not offer sufficient information to make investment decisions, nor does it constitute an offer, recommendation, or solicitation to buy or sell any financial instrument. The content is opinion of the author and does not reflect any view or suggestion or any kind of advise from CryptoNewsBytes.com. The author declares he does not hold any of the above mentioned tokens or received any incentive from the company.
