Binance is a popular centralized crypto exchange in the world, and to think of it, 60% of Nigerians into crypto utilize this exchange daily.
Recently, the Nigerian government requested Binance pay a fine of $10 billion, as it was reported that Binance crypto exchange is the cause of the Nigerian currency devaluation.
If you’ve been in the cryptocurrency space, you might have heard about the plunge in the naira against the dollar currency.
From N700 per dollar in the first quarter of 2023 to over N1500 per dollar in the first quarter of 2024, as of the time of writing this.
The Nigerian president’s “Bola Ahmed Tinubu” special adviser, known as Bayo Onanuga, mentioned that the fine is due to illegal crypto currency exchange operations.
It was said that the illegal operations of Binance Exchange have led to the Naira falling against the major currency, the “dollar.” How true is this?
Last year, in June 2023, the Nigerian regulation issued a warning to individuals against the use of the popular centralized crypto exchange “binance,” saying it was an unregistered local affiliate.
Moreover, it was reported by bitcoin.com news that Binance’s former CEO, CZ, labels Binance Nigeria Limited as a scammer entity, urging users to take caution.
“Don’t believe everything you hear on the news,” CZ said in a tweet on June 18, 2023, regarding Binance Nigeria Limited.
Bola Ahmed Tinubu special adviser Bayo Onanuga said during an interview with the BBC
“The platform fixes the exchange rate for the country, and it is an illegal rate. The CBN [Central Bank of Nigeria] is the only authority that can fix the exchange rate for the country.”
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He explained and highlighted that the crypto exchange Binance is setting the Naira to dollar rate for the country, which isn’t proper. He also added that the CBN only has the authority to fix exchange rates.
The Nigerian regulatory body is not clear about the ban on cryptocurrency; however, in 2021, individuals in Nigeria who were caught in any activities related to crypto had their bank accounts frozen.
Moreover, cryptocurrency-related entities or companies are not forbidden in Nigeria. The thing is, the legal status of cryptocurrency in Nigeria is unclear, unlike in other countries like China, where there is a clear ban.