Forex Crisis: Nigeria Battles Binance

• House Of Reps Summon Binance Boss Over Alleged Terrorism Financing, Issues Seven-Day Ultimatum

Nigerian Government recently took a final stand on crypto. The decision has lead to the largest cryptocurrency company, Binance Holdings Ltd. removing naira features on their website.

The last straw was federal government fined the international company $10 billion but the company denied the report that the Nigerian government has not fined them $10 billion.

According to Bayo Onanuga, President Bola Tinubu’s Special Advisor on Information and Strategy, Binance was fined $10 billion by the Nigerian government for operating illegally, a major factor in the depreciation of the naira. This information was revealed by Naija News.

Onanuga stated that the fine was a component of the effort to preserve the value of the naira in a Friday interview with the BBC.

In response to the alleged fine, a Binance representative told Peoples Gazette that the company did not discuss any fine when it came to strategies to settle disputes with the Nigerian government.

The official said, “We recently discussed ways to resolve issues with Nigeria, but we did not hear any demand for $10 billion.”

He also clarified that it is not discussing with the Nigerian government either to restore its recently cut-off services or release its executives, who are being held in detention.

The official also stated that the company has no intention of paying fines for personnel or services to the Nigerian governmment.

“Our aim is to chart a good relationship with the government and the people of Nigeria. We want to see our services restored in Nigeria very soon, but we have no intention of paying fines for personnel or services,” the official said.

THE MATRIX recall that the Nigerian government had reportedly directed mobile networks to prevent access to Binance platforms.

The CEO of Binance Holdings has been given a seven-day ultimatum by the committee’s chairman, Ginger Onwusibe, to appear before the group by March 4.

READ ALSO: Crypto War: ‘No Plans To Pay’ – Binance Reacts To $10 Billion Fine From Nigerian Govt

THE MATRIX notes that the Central Bank of Nigeria accused online cryptocurrency exchange Binance of money laundering, and the federal government outlawed the main platforms to prevent further manipulation of the foreign exchange market and the flow of illegal monies.

Onwusibe warned that the committee will take appropriate measures if the Binance head fails to heed the summon.

He criticized Teng for his persistent refusal to attend despite several invitations, highlighting the company’s apparent disregard for the country’s established laws regarding business and financial operations.

The committee, under the chairmanship of Onwusibe, sent a letter dated December 12, 2023, summoning the Managing Director of Binance for a hearing scheduled on December 18, 2023.

Onwusibe emphasized the committee’s determination to combat financial crimes, citing the authority granted by the Nigerian Constitution to safeguard citizens from such offences, particularly those perpetrated by foreign entities.

He highlighted the urgency of protecting the nation’s finances, especially amidst economic challenges like recession, and underscored the seriousness of allegations against Binance, including terrorism financing, money laundering, and tax evasion.

Onwusibe stressed the need to preserve tax revenues and prevent channels for funding terrorism while prioritizing the protection of Nigerian investors from exploitative practices by firms like Binance.

He insisted on accountability for tax payments and the establishment of physical offices for addressing consumer grievances, signalling an end to exploitation and a commitment to holding perpetrators accountable.

Onwusibe said, “The constitution of the Federal Republic of Nigeria has empowered us to protect Nigerians from financial crimes, especially by foreign companies.

“We also have to protect and defend the country’s finances, especially now that the country is nose-diving into recession. The allegations of terrorism financing, money laundering and tax evasion, amongst others, levelled against Binance, are damning enough.

READ ALSO: Crypto War: ‘No Plans To Pay’ – Binance Reacts To $10 Billion Fine From Nigerian Govt

“At this material time, we need all the tax dollars and to block the leaks and channels to financing terror.

“It is also our duty to do everything in our power to protect Nigerian investors from predatory firms, and no distraction and manipulation can stop us.

“You cannot run a company with over 10 million Nigerians on your platform without paying tax and having a physical office where Nigerians can lodge their complaints when they experience any challenge with your service. The era of exploitation is over, and all culprits must be held accountable.“