A representative from the Nigerian government has addressed rumors regarding a potential $10 billion fine for the global cryptocurrency exchange Binance. Bayo Onanuga, the Special Adviser to the Nigerian President on Information and Strategy, has refuted claims initially reported by the BBC, asserting that the allegations resulted from a misquotation.
The clarification emerged following the People’s Gazette reports, which highlighted Onanuga’s statement. Contrary to the widespread speculation, Onanuga emphasized that his earlier remarks were misrepresented. He clarified that he had not confirmed any decision to impose a fine on Binance, nor had he specified any amount. He says the discussion about a potential fine remains speculative, with no concrete decision made thus far.
Binance and Nigerian regulatory scrutiny
The discussion around the alleged fine comes when cryptocurrency exchanges, including Binance, face increasing regulatory scrutiny in Nigeria. This development is part of broader efforts to protect the national currency, the Nigerian naira, and ensure the stability of the country’s financial system. Recently, Binance removed the naira from its peer-to-peer (P2P) trading service, coinciding with the Nigerian government’s crackdown on crypto exchanges.
The P2P trading feature, which allows users to trade directly with each other without intermediaries, gained popularity in Nigeria following the government’s ban on crypto transactions during the tenure of former President Muhammadu Buhari. The increased scrutiny on Binance also follows concerns the Central Bank of Nigeria (CBN) expressed regarding suspicious fund flows through the exchange’s Nigerian operations. The CBN Governor, Olayemi Cardoso, pointed out that in 2023, Binance facilitated the movement of $26 billion through Nigeria from unidentified sources and users, raising flags about potential financial risks.
Regulatory environment and digital currency in Nigeria
Amid the regulatory challenges faced by cryptocurrency platforms, Nigeria has shown openness to digital currencies. In December 2023, the CBN lifted a two-year ban on banks dealing with crypto transactions and introduced guidelines for regulating virtual asset service providers. Furthermore, Nigeria became the second country to launch a central bank digital currency in 2022, and the Africa Stablecoin Consortium released the naira-pegged cNGN stablecoin in a CBN-regulated sandbox in February.
These steps indicate Nigeria’s cautious but progressive stance towards integrating digital currencies into its financial system, balancing innovation with regulatory oversight. As the situation evolves, the Nigerian government and Binance continue to navigate the complex landscape of cryptocurrency regulation, with both parties keen on fostering a secure and stable financial environment.
