Why FG Is Slamming $10bn Fine On Crypto Company Binance

N10b is not a small amount of money by any means, but that is the amount of fine that the Nigerian Federal Government has slammed on crypto company, Crypto Company Binance.
The reason for the N10bilion fine is allegations of fueling the country’s foreign exchange (forex) crisis.

Details to the effect emerged in the course of an interview which the Special Adviser to President Bola Tinubu on information and strategy, Bayo Onanuga, with the British Broadcasting Corporation (BBC).

Justifying the sanction, Onanuga asserted that though Binance is not registered in Nigeria and has no presence in the country, it profited substantially from its “illegal transactions” in Nigeria while the nation suffered huge economic losses.

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According to Onanuga, people used the platform to arbitrarily fix dollar-naira rates, which negatively influenced the currency.

He further noted that the Binance team was already cooperating with the Nigerian government by providing useful information, and had already suspended naira-related transactions on the platform.

Onanuga said,
“The platform fixes the exchange rate in Nigeria, which is illegal. The Central Bank of Nigeria is the only authority that can fix the exchange rate for Nigeria.

“Binance harbours 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,” he added.

The presidential aide added that the Crypto Company Binance influenced the increase in foreign exchange rates through currency speculation, which caused the Naira value to fall by almost 70% in recent months.

The Eagle reports that the exchange of the national currency has indeed fallen to a ridiculous level in recent times.

This has not only incapacitated organisations but has also caused anxiety.

See Naira exchange rate here:Dollar To Naira Rate Today March 1, 2024