In a recent development, a representative of the Nigerian government has firmly denied the circulating reports of a $10 billion fine imposed on cryptocurrency exchange Binance. Bayo Onanuga, a special adviser to the Nigerian president on information and strategy, refutes the claims made by the BBC, attributing the confusion to a misquotation.
Contrary to initial reports, Onanuga clarified in a statement to the People’s Gazette that he did not assert Binance was officially informed about the fines or that the amount would be $10 billion. He emphasized the speculative nature of his remarks, highlighting that no conclusive decision has been reached regarding any potential penalties.
The Peoples Gazette, a local news outlet, reported that Binance remains unaware of any proposed $10 billion penalty and has not received formal notification from the Nigerian government. The cryptocurrency exchange reportedly expressed reluctance to engage in negotiations regarding the alleged fines.
This development unfolds against the backdrop of escalating regulatory scrutiny faced by crypto exchanges in Nigeria. Recent actions have seen multiple platforms banned to protect the integrity of the national currency, the Nigerian naira. Binance, responding to the crackdown, removed the naira from its peer-to-peer (P2P) service on February 28.
The P2P feature, which facilitates direct trading between users without intermediary involvement, gained popularity in Nigeria in 2021 following the government’s ban on the thriving crypto industry during the administration of former President Muhammadu Buhari.
Binance finds itself under increased 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. CBN Governor Olayemi Cardoso highlighted that an astonishing $26 billion had passed through Nigeria via Binance in 2023 from unidentified sources and users.
