FG Imposes $10 Billion Penalty on Binance Amid Forex Crisis Allegations”
FG Imposes $10 Billion Penalty on Binance Amid Forex Crisis Allegations"
FG Imposes $10 Billion Penalty on Binance Amid Forex Crisis Allegations”
In a significant move, the federal government has levied a hefty $10 billion fine against Binance, a prominent cryptocurrency trading platform, citing accusations of exacerbating the country’s forex crisis.
Bayo Onanuga, the Special Adviser to President Bola Tinubu on Information and Strategy, revealed this development in an interview with the BBC on Friday morning, March 1st. Onanuga asserted that Binance had profited immensely from what he deemed as “illicit transactions” within Nigeria, while the nation endured substantial economic losses.
According to Onanuga, Binance operates without proper registration in Nigeria and lacks physical presence within the country. Allegations were made that individuals exploited the platform to manipulate dollar-naira exchange rates, adversely affecting the value of the local currency.
Furthermore, Onanuga stated that Binance was cooperating with Nigerian authorities by furnishing valuable information and had already halted naira-related transactions. He emphasized that Binance’s unauthorized fixing of exchange rates in Nigeria contradicts the exclusive authority of the Central Bank of Nigeria in this regard.
Highlighting the detrimental consequences, Onanuga claimed that Binance’s actions contributed to a significant surge in foreign exchange rates, resulting in a nearly 70% depreciation of the Naira in recent months.
The imposition of such a substantial fine underscores the government’s determination to address the challenges posed by unauthorized financial activities amidst efforts to stabilize the economy.
