Nigeria Rejects Claims of $10 Billion Fine against Crypto Exchange Binance Amid Increased Scrutiny
Summary:
Nigeria's government dispels rumors of a potential $10 billion fine against crypto giant Binance, attributing these claims to misquotation. The clarification follows an initial report backed by a statement from Bayo Onanuga, special advisor to the Nigerian president. Amidst this, Binance recently removed the Nigerian fiat currency, the naira, from its P2P service after facing intensified regulatory scrutiny. Nigeria is stepping up measures to regulate the operations of cryptocurrency exchanges, recently lifting a two-year ban on banks for engaging in crypto transactions.
Nigeria's government has dispelled rumors regarding an alleged $10 billion penalty looming over Binance, a leading crypto exchange platform. This correction came despite a BBC report referencing a statement by Bayo Onanuga, an advisor to Nigeria's president for information and strategy. The government has claimed these reports stem from misunderstood quotes. As reported by the local media agency, the People’s Gazette, Onanuga has revised his remarks, insisting his words were misconstrued and affirming no definitive sanction has yet been communicated to Binance. Onanuga refuted notions that Binance had been notified about this purported fine or a stipulated $10 billion sum. He emphasized that any assertion was tentative at this point. According to the Peoples Gazette's reporting on the theoretical $10 billion sanction on Binance, the crypto giant is uninformed about such action and exhibits a reluctant stance towards potential punitive negotiations with Nigeria’s government. Amidst an escalating watchful oversight in Nigeria, various crypto exchange platforms have seen a ban to protect the native currency. In the face of this regulatory onslaught, Binance removed the Nigerian fiat currency, the naira, from its peer-to-peer (P2P) service on Feb. 28. This move came after defending the crypto platform. As a means to facilitate direct trade devoid of third-party interference, P2P transaction gained traction after the previous government's verdict on a burgeoning crypto market under the then-President Muhammadu Buhari. As Nigeria's Central Bank (CBN) raises eyebrows on "suspicious flows" of funds via Binance, the platform experiences enhanced supervision. CBN's Olayemi Cardoso flagged the passage of $26 billion through Nigeria courtesy of unidentified Binance sources and users in 2023. The Abuja office of the National Security Advisor has reportedly detained two higher-ups from Binance as part of a broader move to regulate cryptocurrency exchanges and curtail naira speculation. The CBN revoked a ban on banks involving in crypto operations in December and concurrently set paradigms for virtual asset service providers. Nigeria became the second nation to inaugurate a central bank digital currency in 2022. This month, the Africa Stablecoin Consortium initiated the CBN-compliant cNGN stablecoin, which holds parity with the naira. Binance's response to these allegations is yet to be heard.
Published At
3/2/2024 10:55:45 AM
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