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FG Demands $10 Billion from Binance Amid Crackdown: The implications for crypto trading in Nigeria

by Vicky Oselumese
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FG Demands $10 Billion from Binance Amid Crackdown The implications for crypto trading in Nigeria

The Nigerian government is seeking retribution from Binance, one of the world’s largest cryptocurrency exchanges, following its guilty plea and settlement of $4.3 billion in money laundering charges in the United States. The government’s demand for at least $10 billion aims to salvage the value of the nation’s local currency amidst a crackdown on the crypto platform.

Bayo Onanuga, special adviser on information and strategy to President Bola Tinubu, revealed this in an interview with the BBC. He accused Binance of profiting from “illegal transactions” in Nigeria while the nation suffered significant losses.

The Office of the National Security Adviser (ONSA) has confirmed that an interagency investigation is underway into Binance’s operations.

The Nigerian authorities detained two Binance executives in an effort to stabilize the nation’s foreign exchange market. The executives had flown into the country to negotiate with the government but were accused of operating a business worth billions without the necessary registrations and documentation.

The government demanded data on transactions involving the Nigerian Naira and requested the deletion of certain data relating to Nigeria from the Binance platform.

Mr. Onanuga claimed that Binance is not registered in Nigeria and has no presence in the country.

He alleged that the platform was used to manipulate dollar-naira rates, negatively impacting the value of the local currency.

While Binance has suspended naira-related transactions and is cooperating with the Nigerian government, the government still insists on $10 billion in retribution.

The government’s actions reflect concerns about the impact of cryptocurrency trading on the Nigerian economy.

They believe that if left unchecked, Binance could harm the country’s economy by arbitrarily fixing foreign exchange rates.

The situation remains tense as negotiations continue between Binance and the Nigerian authorities.

The outcome of this investigation will have significant implications for the future of cryptocurrency trading in Nigeria and may set a precedent for other countries grappling with similar issues.

This article was updated 2 months ago

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