Binance Shakes National Foundation? Nigeria Demands $10 Billion Compensation: Binance Causes 70% Depreciation of National Currency

According to a report from BBC, the African country of Nigeria has challenged the world’s largest exchange, Binance, seeking compensation of up to $10 billion. The government accuses the platform of manipulating exchange rates, which has had a significant impact on the country’s economy.
The core of the issue: concerns about currency speculation.
Is cryptocurrency benefiting Africa? Nigeria’s legal and regulatory scrutiny intensifies.
Just as the ban on cryptocurrencies was lifted, the country fell into a national crisis.
Seeking a way to reconcile.
The heart of this legal dispute is the accusation that Binance has destabilized the Nigerian legal currency, the Naira, resulting in a devaluation of 70% in recent months. Nigerian authorities believe that Binance’s speculative activities in the cryptocurrency market have caused an unjustified increase in foreign exchange rates, leading to financial difficulties.
Presidential spokesman Bayo Onanuga and Bola Tinubu expressed concern about the adverse effects of Binance’s operations on Nigeria’s fiscal stability. Onanuga stated, “The platform’s involvement in illegal foreign exchange not only violates national regulations but also exacerbates our economic challenges.” He emphasized the exclusive right of the Central Bank of Nigeria (CBN) to determine the national exchange rate.
With Nigeria deepening its investigation into Binance’s alleged involvement in money laundering and possible financing of terrorism, two senior Binance executives have recently been arrested. This move highlights Nigeria’s firm stance against activities deemed to undermine its economic sovereignty.
Olayemi Cardoso, the Governor of the Central Bank of Nigeria, stated that Binance’s estimated cryptocurrency trading volume related to Nigeria is $26 billion. Cardoso said that the lack of transparency in these transactions poses significant regulatory and security challenges.
This controversy also involves broader issues of cryptocurrency regulation in Nigeria. Despite lifting the ban on cryptocurrencies in 2023, the Nigerian government insists on strict adherence to its legal framework, requiring all cryptocurrency-related companies to register with relevant agencies. Binance and other cryptocurrency entities have faced criticism for operating outside these regulations, prompting a reevaluation of their business practices in the country.
Despite the tense relationship, both sides seem willing to engage in dialogue and seek a resolution. Onanuga pointed out that Binance has adopted a cooperative attitude in providing important information to the authorities, indicating a path towards balancing the platform’s operations with Nigeria’s regulatory expectations.
As this event unfolds, the international community closely watches, recognizing the broader implications of cryptocurrency regulation and the delicate balance between innovation and national economic security. The outcome of Nigeria’s bold $10 billion demand to Binance may set a precedent for how governments worldwide respond to the rapidly evolving digital currency landscape.
Nigeria
Naira
Binance
benefit
Africa