- Authorities in Nigeria are investigating Binance’s activities.
- It is accused of operating without a license and the collapse of the naira rate through speculation.
- Earlier it was reported that two top managers of the exchange were detained.
Nigerian authorities accused the exchange Binance of working without a license and devaluation of fiat currency. The company faces a fine of $10 billion, reports BBC, citing the special adviser to the President Bayo Onanugu.
The official said Binance, as well as other crypto exchanges, are hurting Nigeria’s economy by fixing the naira exchange rate:
“It is illegal. The central bank is the only body that can fix the exchange rate.”
Notably, the head of the regulator, Olayemi Cardoso, had earlier said that about $26 billion from unidentified sources passed through Binance in 2023.
Head of Strategic Communications in the Office of the National Security Adviser, Zachary Mijinyawa, in a comment to Premium Times, confirmed the investigation into the exchange:
“The Office of the National Security Advisor, in conjunction with the Central Bank and law enforcement agencies, is coordinating a multi-agency investigation into Binance’s operations.”
On February 28, 2024, it was reported that two members of Binance’s top management were detained in the country. Prior to that, the Nigerian Communications Commission blocked access to the websites of some major crypto exchanges, including KuCoin and Binance.
The cryptocurrency community noted that Binance removed the naira from its P2P service:
- Silas⚡ (@silasadedoyin) February 28, 2024
At the time of writing, there was no official response from the exchange.
Nigeria’s inflation rate stood at 29.9% in January 2024. The local government tried to keep the naira depreciating by issuing a digital currency from the central bank, but this project failed due to low interest from citizens.
