Nigerian Government Debunks Reports of $10B Fine for Binance.

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As of now, no decision has been reached regarding the imposition of a fine on the cryptocurrency exchange.

A representative from the Nigerian government has denied the speculation surrounding a $10 billion fine on Binance. Bayo Onanuga, who serves as a special adviser to the Nigerian president on information and strategy, refuted the allegations reported by the media, attributing them to a misinterpretation.

In response to a report from the People’s Gazette, Onanuga clarified that his initial statement was misrepresented, emphasizing that no definitive decision has been made regarding the imposition of a fine on Binance.

He specifically stated that he did not assert that Binance had been informed about the fines or that the amount would be $10 billion. Onanuga only alluded to the possibility of a fine, emphasizing the ongoing nature of the situation and the lack of a final decision.

Regarding the purported $10 billion penalty on Binance, as reported by the People’s Gazette, it was noted that Binance is unaware of such fines and has not been formally informed.

Additionally, the cryptocurrency exchange allegedly expressed reluctance to engage in negotiations with the Nigerian government concerning any potential fines.

Amidst mounting regulatory scrutiny in Nigeria, cryptocurrency exchanges are encountering increased pressure, particularly with the recent banning of multiple platforms aimed at safeguarding the national currency, the Nigerian naira. As part of this regulatory environment, Binance took action by removing the naira from its peer-to-peer (P2P) service on Wednesday, February 28, amid intensified scrutiny and a crackdown on the crypto exchange.

The peer-to-peer (P2P) feature, enabling users, buyers, and sellers to engage in trade without intermediary involvement, gained prominence in Nigeria in 2021. This surge in popularity occurred after the government’s prohibition of the thriving crypto industry during the administration of former President Muhammadu Buhari.

Binance is currently facing heightened scrutiny in Nigeria, prompted by concerns raised by the Central Bank of Nigeria (CBN) regarding “suspicious flows” of funds through the exchange’s Nigerian arm in 2023. Olayemi Cardoso, the CBN Governor, pointed out that an estimated $26 billion had traversed Nigeria via Binance in 2023, originating from undisclosed sources and users.