Nigeria Govt Denies $10B Binance Fine speculation on Finance

1. Nigerian government denies $10B Binance fine, citing misquotation and no final decision.
2. Binance, unaware of fines, reluctant to negotiate amid increased regulatory scrutiny.
3. Naira removed from Binance P2P service; two officials reportedly detained in Nigeria.

The Nigerian government has firmly denied rumors surrounding a reported $10 billion fine imposed on Binance. Special adviser to the Nigerian president Bayo Onanuga clarified that the Nigerian president’s office has not made a concrete decision on the alleged penalty.

Onanuga said he did not inform Binance of the fines, nor did he specify the rumored $10 billion figure.

The People’s Gazette, a local news outlet, reported the adviser’s clarification, highlighting that his words were misrepresented. Binance, according to the report, is unaware of any fines and has not been officially notified. They expressed reluctance to engage in negotiations with the Nigerian government.

Growing Regulatory Scrutiny

This development comes amid escalating regulatory scrutiny on cryptocurrency exchanges in Nigeria. Several platforms have recently faced bans as authorities seek to protect the national currency, the Nigerian naira.

Binance removed Nigerian naira, from its peer-to-peer (P2P) service on Wednesday, Feb 28 amid increased regulatory scrutiny in Nigeria.

The P2P feature, enabling direct trading between users, gained popularity in Nigeria in 2021 after the government banned the flourishing crypto industry during former President Muhammadu Buhari’s administration.

The Central Bank of Nigeria (CBN) had earlier raised concerns about “suspicious flows” of funds through Binance’s Nigerian arm in 2023. 

CBN Governor Olayemi Cardoso highlighted that $26 billion had passed through Nigeria via Binance in 2023 from unidentified sources and users. The National Security Adviser’s office has reportedly detained two senior officials in Abuja as part of the crackdown.

Nigeria, which was the second country to launch a central bank digital currency in 2022. In December 2023, the CBN lifted a two-year ban on banks.

The Africa Stablecoin Consortium also launched the naira-pegged cNGN stablecoin in a CBN regulator sandbox in February.

Nigerian Committee Summons Binance CEO

The Nigerian House of Representatives Committee on Financial Crimes has summoned Binance CEO Richard Teng over concerns of terrorism financing and money laundering.

Committee Chair Ginger Onwusibe issued an ultimatum, requiring Teng’s appearance by March 4, 2024, warning of constitutional actions if ignored. But expressing disappointment at Teng’s non-compliance with prior invitations, Onwusibe emphasized the committee’s commitment to upholding financial laws.

Meanwhile, the National Security Adviser’s office reportedly detained two senior Binance officials in Abuja, part of the government’s crackdown on crypto exchanges to address speculation around the Nigerian naira.

Binance recently removed the naira from its P2P service in response to regulatory pressures.