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The Nigerian government has taken a significant step in its ongoing crackdown on cryptocurrency exchange platforms, demanding at least $10 billion from Binance as retribution for alleged “illegal transactions.” This move comes amidst desperate efforts by the Nigerian government to stabilize the nation’s struggling currency, the Naira.
The demand was announced on Friday morning by Bayo Onanuga, special adviser on information and strategy to President Bola Tinubu, during an interview with the BBC. Mr. Onanuga accused Binance of profiting substantially from these “illegal transactions” while Nigeria incurred significant losses. However, the specific nature of these alleged illegal activities remains unclear, and Binance has not yet publicly responded to the accusations or the hefty financial demand.
Read Also: Nigerian Govt cites economic concerns in crackdown on Binance
This development marks a significant escalation in the Nigerian government’s ongoing struggle to regulate the cryptocurrency market. Earlier in the week, the Nigerian telecommunications regulator ordered telecom companies to block access to several cryptocurrency trading websites, including Binance. This move was met with criticism from some Nigerians who view it as an infringement on their economic freedom and a potential barrier to financial inclusion.
The $10 billion demand placed on Binance is likely to be a contentious issue. It is unclear whether the Nigerian government has any legal basis for this demand, and it is also questionable whether Binance would be willing or even able to pay such a large sum. This situation is likely to be closely monitored by the international community, as it has the potential to set a precedent for how governments around the world approach the regulation of cryptocurrency exchanges.
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