The Federal Government has levied a hefty $10 billion fine on the cryptocurrency trading platform Binance, accusing it of exacerbating Nigeria’s forex crisis.
Bayo Onanuga, the Special Adviser to President Bola Tinubu on Information and Strategy, revealed this in an interview with the BBC on Friday morning.
According to Onanuga, Binance engaged in “illegal transactions” in Nigeria, profiting significantly while the nation suffered substantial losses. He emphasized that Binance is not registered in Nigeria and lacks a physical presence. Allegedly, individuals used the platform to manipulate dollar-naira exchange rates, adversely affecting the local currency’s value.
Furthermore, Onanuga stated that Binance had suspended naira-related transactions on its platform and was cooperating with the Nigerian government by providing valuable information.
He asserted that Binance’s activities influenced the rise in foreign exchange rates through currency speculations, resulting in nearly a 70% depreciation of the Naira in recent months.
Confirming the investigation into Binance’s operations, Zakari Mijinyawa, head of Strategic Communication at the Office of the National Security Adviser (ONSA), stated that the ONSA is coordinating an interagency investigation with the Central Bank of Nigeria (CBN) and other law enforcement agencies.
Earlier reports indicated two top Binance executives were arrested and detained over alleged manipulative practices in foreign exchange trading and speculative activities.
Based on these allegations, Onanuga called for banning Binance, Kucoin, and other trading platforms in Nigeria. He urged swift action by the Economic and Financial Crimes Commission (EFCC) and the CBN to halt the operations of these crypto exchanges in the country.
Onanuga criticized Nigerians trading currency on Binance for lacking patriotism and highlighted the platform’s regulatory challenges in various countries, including the US, UK, Canada, Singapore, and Japan.
He emphasized that Binance, facing regulatory scrutiny globally, should not dictate the value of the Naira on its crypto exchange platform, particularly amidst Nigeria’s forex challenges.
