Nigerian government representatives have refuted speculation that cryptocurrency exchange Binance was fined $10 billion. Bayo Onanuga, special adviser to the Nigerian president on information and strategy, said the allegations reported by the BBC were the result of misquotes.
According to local news outlet People's Gazette, Onanuga changed his statement, saying his comments were misrepresented and claiming that no firm decision has been made on Binance's fine. Onanuga said he did not specify whether Binance had been informed of the amount of the fine or that it would be $10 billion. He only mentioned the possibility of a fine because nothing has been finalized.
The People’s Gazette said Binance was not aware of and had not been informed of the $10 billion fine. The cryptocurrency exchange reportedly expressed its unwillingness to negotiate with the Nigerian government over any fine.
The announcement comes as cryptocurrency exchanges face increasing regulatory scrutiny in Nigeria, with multiple platforms recently banned in an effort to protect the country’s national currency, the Nigerian naira. On Wednesday, February 28, Binance removed the naira from its peer-to-peer (P2P) service amid a crackdown on cryptocurrency exchanges.
The P2P feature allows users, buyers, and sellers to conduct transactions without involving a third party. The technology became popular in Nigeria in 2021 after the government banned its thriving cryptocurrency industry during the administration of former President Muhammadu Buhari.
Binance has come under increasing scrutiny in Nigeria, with the Central Bank of Nigeria (CBN) expressing concerns over “suspicious flows of funds” through the exchange’s Nigerian branch in 2023. CBN Governor Olayemi Cardoso highlighted that $26 billion flowed through Nigeria via Binance in 2023 from unknown sources and users.
The Office of the National Security Advisor also reportedly detained two senior Binance officials in the Nigerian capital of Abuja as the country looks to crack down on cryptocurrency exchanges to curb speculation about the naira.
In December 2023, the central bank lifted a two-year ban on banks engaging in cryptocurrency transactions, while issuing guidelines for regulating virtual asset service providers.
Nigeria is the second country to launch a central bank digital currency in 2022. The African Stablecoin Alliance also launched its naira-pegged cNGN stablecoin in the CBN regulatory sandbox in February.
Cointelegraph has reached out to Binance for comment.
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