A representative from the Nigerian government has denied rumors of a $10 billion fine for crypto exchange Binance. Bayo Onanuga, a special adviser to the Nigerian president on information and strategy, claims that the allegations reported by the BBC were a result of misquotation. According to the People’s Gazette, Onanuga clarified that his words were misrepresented and stated that there has been no final decision regarding the fine. He emphasized that he did not inform Binance about the fines or mention a specific amount, but rather discussed the possibility of a fine.
In response to the $10 billion penalty, Binance has expressed unawareness and stated that it has not been informed by the Nigerian government. The cryptocurrency exchange has reportedly shown reluctance to negotiate any fines with the government.
This statement comes at a time when crypto exchanges are facing increased regulatory scrutiny in Nigeria. Several platforms have been banned recently to protect the country’s national currency, the Nigerian naira. Binance has also removed the naira from its peer-to-peer (P2P) service as part of the crackdown on the crypto exchange.
The P2P feature, which allows users to trade without involving a third party, gained popularity in Nigeria in 2021 after the government banned the thriving crypto industry during former President Muhammadu Buhari’s administration.
Binance is facing heightened 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. The CBN Governor, Olayemi Cardoso, highlighted that $26 billion had passed through Nigeria via Binance in 2023 from unidentified sources and users.
Additionally, two senior Binance officials have reportedly been detained by the National Security Adviser’s office in Abuja, Nigeria’s capital, as the nation aims to crack down on cryptocurrency exchanges to control speculation about the naira.
In December 2023, the CBN lifted a two-year ban on banks engaging in crypto transactions and issued guidelines for regulating virtual asset service providers. Nigeria was the second country to launch a central bank digital currency in 2022, and the Africa Stablecoin Consortium launched the naira-pegged cNGN stablecoin in a CBN regulator sandbox in February.
Cointelegraph has reached out to Binance for comment on the matter.
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