A representative from the Nigerian government has denied rumors of a $10 billion fine for crypto exchange Binance. Bayo Onanuga, a special adviser to the Nigerian president on information and strategy, claims that the allegations reported by the BBC are a result of misquotation. According to the People’s Gazette, Onanuga clarified that his words were misrepresented and emphasized that no final decision has been made regarding the fine. He stated that he did not inform Binance about the fines or specify that it would amount to $10 billion; he merely mentioned the possibility of a fine, as the matter is still under consideration.
The Peoples Gazette also reported that Binance is unaware of the $10 billion penalty and has not been officially informed. The cryptocurrency exchange has reportedly shown reluctance in negotiating any fines with the Nigerian government.
This statement comes at a time when crypto exchanges in Nigeria are facing increased regulatory scrutiny, leading to the recent banning of multiple platforms in order to protect the country’s national currency, the Nigerian naira. Binance responded to the crackdown by removing the naira from its peer-to-peer (P2P) service.
The P2P feature allows users to trade without involving a third party and gained popularity in Nigeria in 2021 after the government banned the thriving crypto industry during former President Muhammadu Buhari’s administration.
Binance has faced growing scrutiny in Nigeria, with the Central Bank of Nigeria (CBN) expressing concerns about suspicious fund flows through the exchange’s Nigerian arm in 2023. CBN Governor Olayemi Cardoso highlighted that $26 billion had passed through Nigeria via Binance in 2023 from unidentified sources and users.
In addition, the National Security Adviser’s office has reportedly detained two senior Binance officials in Abuja, the Nigerian capital, as part of the country’s efforts to crack down on cryptocurrency exchanges and address speculation about the naira.
In December 2023, the CBN lifted a two-year ban on banks engaging in crypto transactions and issued guidelines for regulating virtual asset service providers. Nigeria was the second country to launch a central bank digital currency in 2022. The Africa Stablecoin Consortium also introduced the naira-pegged cNGN stablecoin in a CBN regulator sandbox in February.
Cointelegraph has reached out to Binance for comment.