Nigeria has filed charges against cryptocurrency exchange Binance, one of the world's leading cryptocurrency exchange platforms. The exchange is accused of illegal activities, lack of license, and illegal movement of funds, which have led to pressure on the local currency.
Nigerian authorities last week blocked Binance's online platform, as well as some other foreign cryptocurrency companies (Forextime, OctaFX, Crypto, FXTM, Coinbase, and Kraken), to stop "persistent manipulation of the foreign exchange market."
Nigeria has demanded that Binance pay a $10 billion fine over allegations of illegal cryptocurrency transactions, according to CoinGape.
On February 28, two Binance executives were detained in Nigeria after arriving to settle charges against the cryptocurrency exchange. One of the two detained Binance executives is an American, and the other is a British man of Pakistani origin.
Amid ongoing measures to stabilize the foreign exchange market and keep the local currency, the naira, stable, the Nigerian government has demanded a staggering $10 billion fine from Binance for illegal activities that caused the devaluation of the currency.
Due to the ever-increasing number of cryptocurrency transactions in the country, the authorities intend to crack down on Binance.
The Office of National Security Affairs (ONSA) has announced an investigation into Binance's activities. ONSA's Head of Strategic Communication, Zachary Mijinyawa, said several government agencies are looking into Binance's activities in Nigeria.
Bayo Onanuga, the Presidential Special Adviser on Information and Strategy, confirmed the investigation into Binance's alleged involvement in illegal transactions, stressing the significant impact on Nigeria's financial ecosystem and the naira exchange rate.
The official accused the exchange of providing crypto services without registration and licensing in Nigeria. Concerns have been raised about Binance's alleged manipulation of the dollar-naira exchange rate, which has reportedly negatively impacted the local currency.
Binance has responded to these allegations by stating that its activities have no impact on the local currency but have suspended deposits, withdrawals, and all transactions in the local currency. However, the Nigerian government is still demanding payment of a fine for damages.
The investigation is ongoing, and the situation is becoming increasingly tense. In the meantime, all stakeholders are watching the outcome while assessing the potential impact on crypto regulation around the world.
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