- Nigeria levied a $10 billion fine against Binance for profiting from illegal transactions in the country, according to a special advisor to President Bola Tinubu.
- The massive fine comes amid Nigeria’s crackdown on unregistered crypto exchanges and currency issues as the Nigerian Naira falls to record lows.
- The penalty adds to Binance’s growing regulatory troubles worldwide, including a long-running US investigation that resulted in fines last year.
The Nigerian government has levied a whopping $10 billion fine against cryptocurrency exchange Binance. According to a special advisor to President Bola Tinubu, the fine is for Binance profiting from illegal transactions in the country. This comes amidst growing crackdowns on unregistered crypto exchanges in Nigeria.
Nigerian Authorities Claim Binance Profited from Illegal Transactions
On Friday, Bayo Onanuga, a special advisor to Nigerian President Bola Tinubu, revealed the $10 billion penalty in an interview with the BBC. Onanuga stated that the fine was for Binance profiting from “illegal transactions” in the country.
This revelation comes just a day after reports emerged that Binance executives were detained in Nigeria. The country has become increasingly strict with its stance against the exchange over recent months. Nigeria previously implemented an outright ban against cryptocurrencies in 2021.
Nigeria Faces Currency Crisis as Naira Plummets
The massive fine levied against Binance comes at a time when Nigeria is facing a major crisis with its currency. The Nigerian Naira has fallen to record lows against the US dollar in recent months.
According to Onanuga, Binance has exacerbated the currency issues by fixing exchange rates in the country. He told the BBC that Binance was “harboring people who fix the exchange rate, which quickly affects the Nigerian economy.”
Onanuga has previously called for Binance to be held accountable for its perceived effect on the Nigerian economy. The $10 billion fine appears to be the government’s attempt to penalize the exchange.
Binance Faces Global Regulatory Pressure
The fine from Nigeria adds to Binance’s regulatory woes across the globe. The exchange is already facing a long-running investigation from US authorities that resulted in hefty fines last year.
Now Binance must also deal with massive financial penalties from the Nigerian government. The escalating regulatory pressure worldwide continues to threaten the operations of one of the largest crypto exchanges.
