The Federal Government has slammed a $10 billion fine on Binance, a tier-one cryptocurrency exchange, amidst accusations of fueling the nation’s forex and currency depreciation crisis.
Bayo Onanuga, special adviser to President Bola Tinubu on information and strategy, revealed this development during an interview with the BBC on Friday morning. According to Onanuga, Binance made substantial profits from its “unlawful transactions” in Nigeria while the country incurred significant losses.
He alleged that Binance operates without registration in Nigeria and lacks a physical presence in the country. Onanuga claimed that individuals utilised the platform to arbitrarily set dollar-naira exchange rates, negatively impacting the local currency’s value. Further explaining, Onanuga stated that the Binance team is cooperating with the Nigerian government by providing useful information and has suspended naira-related transactions on the platform.
Accusations against Binance
Highlighting the implications of Binance’s activities in Nigeria and the Naira, Onanuga stated:”The platform sets exchange rates in Nigeria, which is illegal. The Central Bank of Nigeria is the sole authority empowered to set exchange rates for Nigeria.
“Binance accommodates individuals who manipulate exchange rates, adversely affecting the country during a period when the government aims to stabilize the economy.” He added that Binance contributed to the surge in foreign exchange rates through currency speculation, leading to nearly a 70% depreciation in the value of the Naira in recent months.
Binance under Scrutiny
Earlier on Friday, the Office of the National Security Adviser (ONSA) confirmed that Nigerian authorities are investigating the crypto exchange platform.
In its initial official acknowledgment of efforts to clamp down on Binance’s activities and those of other crypto platforms, a senior official from ONSA informed a News Central journalist that the security adviser’s office is overseeing an inter-agency inquiry into Binance’s operations.
“I confirm that the Office of the National Security Adviser, as part of ongoing operations in the foreign exchange market with the Central Bank of Nigeria and other law enforcement and security agencies, is coordinating an interagency investigation into Binance,” stated Zakari Mijinyawa, head of Strategic Communication at the Office of the National Security Adviser.
Earlier reports from News Central detailed the arrest and detention of two senior Binance executives on Wednesday for alleged manipulative practices in foreign exchange trading and speculative activities. The executives’ visit to Nigeria came in response to the country’s recent crackdown on various cryptocurrency trading platforms.
