Nigeria rejects report of $10B Binance fine

A representative of the Nigerian government has rejected speculation of a $10 billion fine for crypto exchange Binance. Bio Onanuga, the Special Adviser on Information and Strategy to the Nigerian President, says the allegations reported by the BBC are the result of false statements.

According to local news outlet, People's Newspaper, Onanuga changed his statement, saying that his words were incorrect and that no decision had been made to punish Binance. Onanuga did not say whether Binns was informed of the fine or whether it would be $10 billion. He only mentioned the possibility of a fine as nothing is final yet.

Regarding the $10 billion fine on Binance, People's Newspaper stated that Binance was unaware and was not informed. The cryptocurrency exchange has indicated that it is unwilling to negotiate any fines with the Nigerian government.

The statement comes as crypto exchanges face growing regulatory scrutiny in Nigeria, where many platforms have recently been banned to protect the country's national currency, the Nigerian naira. On Wednesday, February 28, Binance removed the naira from its peer-to-peer (P2P) service amid an attack on the crypto exchange.

Related: Head of Nigeria's central bank criticizes Binance, execs report

The P2P feature allows users, buyers and sellers to trade without involving a third party. It gained popularity in Nigeria in 2021 following the government's ban on the thriving crypto industry during the administration of former President Muhammadu Buhari.

The Central Bank of Nigeria (CBN) is under intense scrutiny in Nigeria as it has expressed concerns about the “suspicious flows” of funds from its Nigerian arm in 2023. CBN Governor Olami Cardoso He pointed out that by 2023, $26 billion will pass through Binance in Nigeria. From unknown sources and users.

The Office of the National Security Adviser is also reported to have detained two senior BNIS officials in the Nigerian capital, Abuja.

In the year In December 2023, the CBN lifted a two-year ban on banks on crypto trading and issued guidelines to simultaneously regulate virtual asset service providers.

In the year In 2022, Nigeria was the second country to launch a central bank digital currency. The African Stablecoin Consortium launched the naira-pegged cNGN stablecoin in the CBN regulatory sandbox in February.

Cointelegraph has contacted Binance for comment.

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