Another Trouble as FG Fines Binance $10 Billion for Devaluing the Naira

With the suspension of the P2P feature on Binance, Nigerian cryptocurrency traders cannot convert or trade their coins on the platform. The duration of this ban is yet to be determined.

The recent statement from Binance officials suggests that they could not meet the federal government's demands, leading to the government's decision to shut down the peer-to-peer feature. 

In a surprising turn of events, the government has issued a report demanding a $10 billion fine. This penalty is being imposed for allegedly encouraging transactions that led to the devaluation of the naira. The naira had been steadily losing value against the dollar, making it difficult for people to import goods. 

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Despite the government's efforts to stabilise the situation, it was discovered that speculators were using Binance, the largest cryptocurrency platform, to operate. The way USDT was trading against the naira was deemed excessive, and Binance's response to the situation was seen as inadequate. 

Following the government's decision to implement new measures, the EFCC was dispatched to arrest unlicensed BDC operators who were involved in currency racketeering. These arrests significantly impacted their operations, leading to a slowdown in their activities.

Just today, Bayo Onanuga, the Special Adviser to the President on Information and Strategy, announced the next thing the government wants from Binance. He made this revelation in a Friday morning interview with the BBC.

Onanuga stated that Binance profited substantially from its "illegal transactions" in Nigeria while the nation suffered heavy losses.

He also argued that the company is neither registered in Nigeria nor has any presence in the country, adding that some users leveraged the platform to arbitrarily determine dollar-naira rates, which saw a sharp decline in the value of the naira.

Giving further clarification to our correspondent, Onanuga stated, "I said compensation is being discussed, and a fine is being contemplated. I used the word 'May'. "

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The Presidential Spokesperson affirmed that the cryptocurrency exchange platform cooperates with the Nigerian government by providing helpful information and has since suspended naira-denominated transactions.

The Office of the National Security Adviser confirmed that the crypto exchange platform is under investigation by Nigerian authorities.

The development came months after Binance pleaded guilty, agreeing to pay $4.3 billion to settle criminal money laundering charges levied by the U.S. Department of Justice.