Speculation regarding a purported $10 billion fine imposed on cryptocurrency exchange Binance by the Nigerian government has been refuted by a representative of the government. Bayo Onanuga, Nigeria's special adviser to the president on information and strategy, dismissed the allegations reported by the BBC, stating that they were the result of a misquote.
Onanuga clarified his position through local news outlet People's Gazette, asserting that his remarks had been misrepresented. He emphasized that a definitive decision regarding Binance's fine had yet to be reached, denying claims that the exchange had been notified of a $10 billion fine. Onanuga highlighted that the mention of potential fines was merely speculative at this stage, with no final determinations made.
Contrary to reports suggesting otherwise, Binance purportedly remains unaware of any such fine and has not been formally notified by the Nigerian government. The cryptocurrency exchange reportedly conveyed its reluctance to engage in negotiations concerning fines. The announcement coincides with heightened regulatory scrutiny faced by cryptocurrency exchanges in Nigeria, leading to the recent ban of several platforms in a bid to safeguard the country's national currency, the Nigerian naira.
Binance took steps to address regulatory concerns by removing support for the naira from its peer-to-peer (P2P) service on February 28. The decision came amid a broader crackdown on cryptocurrency exchanges in Nigeria, with P2P functionality enabling users to conduct transactions without intermediaries. This technology gained traction in Nigeria in 2021 following the prohibition of the country's burgeoning cryptocurrency industry during the tenure of former President Muhammadu Buhari.
The increased scrutiny of Binance in Nigeria stems from concerns raised by the Central Bank of Nigeria (CBN) regarding suspicious fund flows through the exchange's Nigerian branch in 2023. CBN Governor Olayemi Cardoso highlighted a significant sum of $26 billion flowing through Nigeria via Binance from unidentified sources and users.
Additionally, reports emerged indicating the detention of two senior Binance officials by the Office of the National Security Adviser in Abuja, Nigeria's capital. This action reflects the country's efforts to clamp down on cryptocurrency exchanges to mitigate speculation surrounding the naira. In December 2023, the central bank lifted a two-year ban on banks engaging in cryptocurrency trading and issued guidelines for regulating virtual asset service providers, signaling evolving regulatory dynamics in Nigeria's cryptocurrency landscape.
