The Nigerian government has escalated its crackdown on crypto exchange platforms by imposing a staggering $10 billion fine on Binance for alleged illegal transactions within the country. The announcement was made by Bayo Onanuga, special adviser on information and strategy to President Bola Tinubu, during an interview with the BBC on Friday.
The move follows the recent detention of two senior executives of Binance in February 208, 2024, over allegations of price manipulations. Onanuga accused the cryptocurrency platform of causing significant losses by fixing exchange rates and engaging in illicit activities that undermine the Nigerian economy.
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The crackdown on Binance intensified after the Securities and Exchange Commission (SEC) declared the operations of Binance Nigeria Limited illegal in June 2023. Olayemi Cardoso, governor of the CBN, revealed alarming statistics during the investigation, indicating that $26 billion had passed through Binance Nigeria from unidentified sources within one year.
Cardoso reiterated the apex bank’s commitment to collaborating with the SEC to eradicate price manipulations in the FX market. The CBN’s partnership with the Office of the National Security Adviser (ONSA) further underscores the government’s determination to root out illicit activities within the FX market and protect the country’s financial stability.
The unprecedented fine imposed on Binance sends a clear message that the Nigerian government is prepared to take decisive action against crypto exchange platforms that violate regulatory standards and jeopardize the nation’s economic interests.
