FG Slams $10 billion Fine on Binance Amid Forex Crisis

Forex crisis: FG slams $10 billion fine on Binance

Nigeria Imposes $10 Billion Fine on Binance Amid Forex Crisis

In a significant move, the Federal Government of Nigeria has levied a hefty $10 billion fine against Binance, a prominent cryptocurrency trading platform, citing its alleged role in exacerbating the country’s ongoing forex crisis.

The revelation came to light through an interview with Bayo Onanuga, the Special Adviser to President Bola Tinubu on Information and Strategy, broadcasted by the BBC on Friday morning.

Onanuga asserted that Binance had significantly profited from what he termed as “illegal transactions” within Nigeria, causing substantial losses to the nation’s economy. He emphasized that Binance lacks proper registration and presence in Nigeria, and individuals utilized the platform to manipulate dollar-naira exchange rates, adversely affecting the local currency’s value.

Moreover, Onanuga stated that Binance has started cooperating with Nigerian authorities by furnishing essential information and has already suspended naira-related transactions on its platform.

Allegations of Rate Manipulation by Binance

Highlighting the detrimental effects of Binance’s operations, Onanuga pointed out that the platform’s unauthorized fixing of exchange rates in Nigeria violates the country’s regulations. He stressed that such actions led to an increase in foreign exchange rates through speculative activities, resulting in nearly a 70% depreciation of the Naira’s value in recent months.

Ongoing Investigation and Call for Action

The Office of the National Security Adviser (ONSA) confirmed an ongoing investigation into Binance’s activities, signaling the government’s determination to address concerns regarding the platform’s operations. Zakari Mijinyawa, Head of Strategic Communication at the ONSA, affirmed the collaboration among various law enforcement and security agencies in probing Binance’s activities.

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Furthermore, in response to the alleged role of Binance in exacerbating the Naira crisis, Onanuga advocated for the ban of Binance, Kucoin, and other trading platforms in Nigeria. He urged the Economic and Financial Crimes Commission (EFCC) and the Central Bank of Nigeria (CBN) to swiftly intervene and halt the operations of these crypto exchanges in the country.

Highlighting the global regulatory scrutiny faced by Binance, Onanuga underscored the platform’s limitations in multiple jurisdictions, including the US, Singapore, Canada, and the UK. He emphasized that Binance’s regulatory challenges elsewhere underscore the necessity of preventing the platform from influencing the Naira’s value on its crypto exchange platform.

In essence, the Nigerian government’s imposition of a significant fine on Binance reflects its commitment to address concerns surrounding cryptocurrency trading platforms amid the country’s forex crisis. Swift regulatory action is deemed essential to safeguard Nigeria’s economic stability and prevent further currency devaluation.

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