In a remarkable development that has sent ripples through the global economic community, Nigeria has reportedly targeted Binance, the leading cryptocurrency exchange globally, with a proposed $10 billion in fines. Having said that, the Nigerian regulators have taken a surgical action to suspend Binance from operating in Nigeria, as the country was $26 billion down in its foreign reserves because of Binance’s poor practices that aggravated the nation’s existing foreign exchange crisis. This news was, first of all, broadcast by the BBC.
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- Nigeria has proposed imposing a $10 billion fine on the world’s leading cryptocurrency exchange, Binance, citing unauthorized financial activities.
- The fine is a consequence of Binance being accused of being responsible for the outflow of $26 billion in illegal assets, which further exacerbates the current foreign exchange crisis in Nigeria.
- Recent cases include the temporary detention of two Binance top managers by Nigerian authorities to clarify the activity of cryptocurrency exchanges in the country.
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Nigeria Proposes $10 Billion Penalty on Binance Amid Financial Turmoil
The call for fines arises from Binance’s alleged unauthorized activities within Nigeria. Bayo Onanuga, representing President Bola Tinubu, accused Binance of illegally determining exchange rates for the Nigerian Naira, a right reserved solely for the nation’s central bank, in a statement to the BBC’s pidgin language service.
However, Onanuga later offered a clarification in a statement to the People’s Gazette, indicating a softening of his earlier position.”I said that our government might consider imposing substantial fines on Binance because of the incident,” Onanuga explained. He stressed that no concrete decision has been made regarding the imposition of the $10 billion fine, nor has Binance been officially informed of such a decision.
The government’s concerns about Binance stem from its operation without registration in Nigeria, which, according to them, has caused significant economic disruption and contributed to the naira’s precipitous 70% depreciation in recent months.
As to the related development, it surfaced that two senior executives of Binance transferred to Nigeria and their passports were confiscated at the airport, which emphasized that the Nigerian authorities pay more attention to cryptocurrency exchanges. This followed news of investigations in crypto, according to the Financial Times, that touched on Nigerian platform operators.
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