A spokesperson from the Nigerian government has denied rumors of a $10 billion fine imposed on crypto exchange Binance. Bayo Onanuga, a special adviser to the Nigerian president on information and strategy, argues that the allegations reported by the BBC are a result of misquotation. According to the People’s Gazette, a local news outlet, Onanuga claims that his words were misrepresented and that there has been no final decision made regarding the fine. He clarifies that he did not state that Binance was informed about the fines or that the amount would be $10 billion. He only mentioned the possibility of a fine, as nothing has been confirmed yet.
The Peoples Gazette reports that Binance is unaware of the $10 billion penalty and has not been officially informed. The cryptocurrency exchange allegedly expressed its reluctance to negotiate any fines with the Nigerian government.
The statement comes at a time when crypto exchanges are facing increased regulatory scrutiny in Nigeria. Several platforms have recently been banned in an effort to protect the country’s national currency, the Nigerian naira. On February 28, Binance removed the naira from its peer-to-peer (P2P) service as part of the crackdown on the crypto exchange.
The P2P feature allows users to trade without involving a third party, and it gained popularity in Nigeria in 2021 after the government banned the thriving crypto industry during former President Muhammadu Buhari’s administration.
Binance is facing heightened scrutiny in Nigeria, with the Central Bank of Nigeria (CBN) expressing concerns about “suspicious flows” of funds through the exchange’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.
Reports also suggest that the National Security Adviser’s office has detained two senior Binance officials in the Nigerian capital, Abuja, as the country aims to crack down on cryptocurrency exchanges to control speculation about the naira.
In December 2023, the CBN lifted a two-year ban on banks engaging in crypto transactions and simultaneously issued guidelines for regulating virtual asset service providers. Nigeria became the second country to launch a central bank digital currency in 2022. Additionally, the Africa Stablecoin Consortium launched the naira-pegged cNGN stablecoin in a CBN regulator sandbox in February.
Cointelegraph has reached out to Binance for comment.