Bayo Onanuga, an advisor to the Nigerian president, has publicly refuted claims about the imposition of a colossal fine on Binance, a leading cryptocurrency exchange platform. Onanuga insists that reports of a $10 billion penalty were misconstrued and emphasized that no such decision has been finalized.
Clarifying the Binance Penalty Rumors
Contrary to circulating reports, Onanuga disclosed that he was unaware of any financial sanctions targeting Binance. He further mentioned that although discussions about a potential fine took place, the authorities had not reached a conclusive verdict on the matter. The advisor’s comments come amidst heightened regulatory scrutiny of cryptocurrency exchanges in Nigeria, including recent access restrictions to several platforms to safeguard the national currency’s stability.
Binance has felt the heat of these regulatory challenges, prompting them to halt their Nigerian naira offerings on the peer-to-peer (P2P) trading service at the end of February. This platform had seen a surge in usage in Nigeria, especially after the government’s intensified oversight of the crypto sector began in 2021.
Binance Under Watchful Eye of Nigerian Authorities
The Central Bank of Nigeria previously expressed concerns about dubious transactions flowing through Binance, which reportedly saw $26 billion in unidentified funds transferred in 2023. There were also unverified reports of the detention of two Binance executives by security forces in Abuja, further indicating the government’s firm stance on crypto exchange regulation and its impact on the naira.
Despite these incidents, December 2023 marked a significant change, as the Central Bank rescinded a two-year prohibition on banks’ involvement in cryptocurrency transactions and proposed virtual asset service provider regulations. Additionally, Nigeria pioneered a central bank digital currency and witnessed the launch of a naira-backed stablecoin by the Africa Stablecoin Consortium within a CBN-sanctioned virtual space.