The Nigerian government has imposed a colossal $10 billion fine on Binance, a prominent cryptocurrency trading platform, citing its alleged role in exacerbating the country's ongoing foreign exchange crisis. Bayo Onanuga, the Special Adviser on Information and Strategy to President Bola Tinubu, disclosed this development in an exclusive interview with the BBC on Friday.
According to Onanuga, Binance, despite not being registered in Nigeria, purportedly engaged in illicit transactions, reaping substantial profits while the nation suffered significant financial losses. The adviser claimed that users on the platform were manipulating dollar-naira exchange rates, adversely affecting the value of the local currency.
Onanuga asserted that Binance had ceased naira-related transactions and was cooperating with Nigerian authorities by providing useful information. He contended that the platform's arbitrary fixation of exchange rates, a power reserved for the Central Bank of Nigeria, had severe consequences on the country's economy during a crucial period of stabilization efforts.
"Binance harbors a lot of people who fix exchange rates, which impacted the country badly at a time when the government is trying to stabilize the economy," Onanuga explained, emphasizing the detrimental effects of Binance's operations on Nigeria.
The adviser accused Binance of influencing foreign exchange rates through currency speculation, contributing to a nearly 70% depreciation in the value of the Naira in recent months.
In a related development, Onanuga had earlier called upon the Central Bank of Nigeria (CBN) and the Economic and Financial Crimes Commission (EFCC) to take decisive action against platforms attempting to manipulate the naira's value through cryptocurrency exchanges. He recommended the outright outlawing of cryptocurrency channels in the country, citing concerns that the continuous depreciation of the currency would persist unabated.
These developments come in the wake of reports that the value of the naira is currently trading at N1680/$ on a cryptocurrency platform. Onanuga's plea to combat currency manipulation echoes his assertion that Binance, a platform facing access restrictions globally, is playing a pivotal role in determining exchange rates for Nigeria, thereby usurping the responsibilities of the CBN.
As the Nigerian government takes a firm stance against cryptocurrency platforms influencing its currency, the global cryptocurrency community watches closely, anticipating potential ramifications for Binance and the broader crypto market.
