Binance faces heightened regulatory scrutiny in Nigeria as authorities intensify their examination of the platform and its activities.
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The Nigerian government is reportedly contemplating imposing fines at the volume of $10 billion on Binance. An outrageous amount which has made the measure appear unrealistic to the public.
According to local media outlets, Bayo Onanuga, the special adviser to the Nigerian president, alleged that the exchange had benefited from facilitating illegal transactions within the country, resulting in significant losses for the nation.
Onanuga suggested that the proposed fine would serve as a form of retribution for the exchange’s actions. Furthermore, the report highlighted that Binance had been operating in Nigeria without proper registrations, further complicating its regulatory standing in the country.
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In recent weeks, the Nigerian government has intensified its scrutiny of Binance’s involvement in the country’s foreign exchange (FX) matters. Reports confirm that Nigerian authorities have initiated an investigation into Binance and detained two of the exchange’s executives upon their arrival in the country to address the ban on the crypto exchange website.
Authorities have also alleged that Binance Nigeria facilitated $26 billion in transactions from undisclosed sources last year.
In response to the crackdown, Binance removed Nigeria’s fiat currency, Naira, from its peer-to-peer (p2p) platform. As of now, the exchange has not issued any new public statements regarding the ongoing issues in Nigeria.
Meanwhile, Binance’s confrontation with the Nigerian government follows its settlement with US authorities. Last year, the firm agreed to pay a record fine exceeding $4 billion for failing to comply with financial regulations.
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Tony Chimdiuto