Tinubu Administration Imposes $10 Billion Fine on Binance Amid Crypto Crackdown
Written by Deborah Oyinloye on March 1, 2024
President Bola Ahmed Tinubu’s government has issued a staggering $10 billion fine against Binance as part of efforts to address concerns over the nation’s local currency value amidst a crackdown on the cryptocurrency exchange platform.
Bayo Onanuga, President Tinubu’s special adviser on information and strategy, revealed this development in an interview with the BBC on Friday morning.
Onanuga emphasized the illegality of Binance’s actions, stating, “Binance has been manipulating exchange rates in Nigeria, which is against the law. Only the Central Bank of Nigeria (CBN) has the authority to determine exchange rates in the country.”
Highlighting the detrimental impact of Binance’s activities on the nation’s economy, Onanuga stated that the platform’s unregistered status in Nigeria allowed for arbitrary fixing of dollar-naira rates, contributing to the depreciation of the local currency.
He further noted that while Binance had suspended naira-related transactions and was cooperating with the Nigerian government, the administration sought retribution in the form of a $10 billion fine.
Confirming the government’s actions, Zakari Mijinyawa, head of Strategic Communication at the Office of the National Security Adviser, disclosed the arrest of two Binance executives for operating without proper registrations and documentation.
Mijinyawa stated, “The national security adviser’s office, in collaboration with the CBN and other law enforcement agencies, is leading an interagency investigation into Binance’s operations.”
Governor of the Central Bank of Nigeria, Olayemi Cardoso, reiterated concerns over cryptocurrency transactions, revealing that over $26 billion had been channeled through Binance in the past year, with many transactions involving unidentified sources and users.
The imposition of the fine on Binance underscores the government’s determination to regulate the cryptocurrency market and safeguard the stability of Nigeria’s financial system.
Author: Deborah Oyinloye
With an interest in media, Deborah aims to impart the lives of people positively.
