Nigerian Government Imposes $10 Billion Fine on Binance Amid Crypto Crackdown

The Nigerian Government has imposed a $10 billion fine on Binance, the world’s largest cryptocurrency exchange platform, in a move to salvage the value of the naira and address the alleged manipulation of the foreign exchange market.

In an interview with the BBC on Friday, March 1, 2024, Bayo Onanuga, the Special Adviser on Information and Strategy to President Bola Tinubu, revealed that the Federal Government’s action against Binance is part of its efforts to protect the local currency.

Onanuga explained that people had been using the crypto exchange platform to arbitrarily fix dollar-naira rates, which negatively impacted the value of the currency.

He added that Binance had profited substantially from its “illegal transactions” in Nigeria while the nation suffered huge losses.

According to Onanuga, the crypto firm is not registered in Nigeria and has no presence in the country. He also disclosed that the Binance team was cooperating with the Nigerian government by providing useful information.

The company has suspended all naira-related transactions on its platform.

Despite this cooperation, the Nigerian Government is demanding at least $10 billion in retribution from Binance.

This comes after the recent crackdown on other crypto exchange platforms, including OctaFX, Crypto, FXTM, Coinbase, and Kraken, to prevent the manipulation of the forex market and the illicit movement of funds.

Two executives of the company were reportedly detained in Nigeria while attempting to negotiate with the Nigerian authorities on the crackdown on their platform.

The Nigerian Government’s actions against Binance and other crypto exchange platforms highlight the growing concern over the potential impact of cryptocurrencies on the stability of national currencies and financial systems.