Binance has refuted a claim by the Nigerian government ordering the world’s largest cryptocurrency exchange to pay $10 billion in fines as compensation for distorting the local currency exchange rate.
According to a report by People Gazette, Binance Holdings Ltd stated that it was not engaged in any discussions with the Nigerian government regarding potential fines of up to $10 billion, contradicting an earlier statement made by a government spokesman to the BBC.
“We recently discussed ways to resolve issues with Nigeria, but we did not hear any demand for $10 billion,” a Binance official told a local news outlet.
“Our aim is to chart a good relationship with the government and the people of Nigeria. We want to see our services restored in Nigeria very soon, but we have no intention of paying fines for personnel or services,” Binance added.
At the same time, the Nigerian Government special adviser cited in the BBC article said that his statement was misrepresented.
A BBC report has reported that the Nigerian 🇳🇬 government has demanded almost $10bn (£8bn) in compensation from the cryptocurrency firm, Binance. @binance pic.twitter.com/Gj90yR5HEA
— BitKE (@BitcoinKE) March 2, 2024
“I said our government may impose heavy fines on Binance for what happened,” Mr Bayo Onanuga told The Gazette. “I never said Binance had been informed about the fines or that it would definitely be $10 billion.
I only said the amount may be imposed, which is because nothing has been finalized yet,” Mr Onanuga said, placing repeated emphasis on the uncertainties around the fines.
In any case, Binance is under fire from the federal government of Nigeria which suspended the firm’s activities alongside Coinbase, Kraken, Forextime, OctaFX, Crypto, and FXTM for ‘fixing the exchange rate.’
REGULATION | Crypto Exchanges to Stop StableCoin Sales in Nigeria Amid Apparent Crackdown
“There was a meeting of crypto founders on Tuesday [February 27 2024] morning, and a number of them agreed to suspend the trades on their platform,” a person at that meeting told a local… pic.twitter.com/iiYBuYrpOu
— BitKE (@BitcoinKE) February 29, 2024
“Binance platform harbors people who fix the exchange rate which quickly affects the Nigerian economy for the time when Nigeria is trying to stabilize the economy,” Mr Onanuga told BBC.
Nigeria’s central bank Governor, Olayemi Cardoso, has said that Binance Nigeria has moved $26 billion worth of untraceable funds.
The government is also said to have detained two executives of the Binance crypto exchange after they flew into the country this week.
According to the Financial Times, the two individuals were detained by Nigeria’s Office of the National Security Adviser, and their passports were confiscated. They had been invited by Nigeria to meet officials but were intercepted upon arrival on the grounds that Binance had been operating in the country illegally.
“It is not necessarily arrest per say,” Zakari Mijinyawa, a spokesman for the National Security Adviser told Bloomberg.
“Meetings and discussions are ongoing. It’s a national security issue and an interagency process is on.”
Last year [2023], the country’s Securities and Exchange Commission (SEC Nigeria) said Binance Nigeria was not authorized to operate in the country.
SEC Nigeria 🇳🇬 Reiterates Warning that Binance Operations are Illegal in the Country
"The Commission again reiterates that the activities of Binance, https://t.co/8dBiGLRtn1 and any such other platform through which the Company solicits investors is neither registered nor… pic.twitter.com/l5gcIB9dGF
— BitKE (@BitcoinKE) August 2, 2023
