Investigation of Binance underway, confirms Nigerian authority
Binance, a leading cryptocurrency exchange, is currently under investigation by the Nigerian government over allegations of economic losses and tax evasion. The Office of the National Security Adviser (ONSA) of Nigeria, headed by Zakari Mijinyawa, is coordinating the inter-agency investigation.
The investigation was confirmed by the ONSA to Nigerian news outlet Premium Times. The allegations against Binance include claims that the exchange is responsible for the devaluation of the local currency, the naira, and owes $2 billion in back taxes.
Last week, Binance placed restrictions on purchasing USDT using Nigeria's currency, a move that has been linked to the ongoing investigation. However, the exchange later reversed these restrictions, allowing trade to continue.
The investigation is not limited to Nigeria, as Binance is also facing scrutiny in other countries for operating without proper licenses. For instance, the Philippines has sought to block access to Binance’s website due to similar regulatory concerns.
Despite the allegations, Nigeria has expressed a willingness to integrate blockchain technology into its economy, recognizing its growing importance in transactions and financial activities. The government aims to strengthen regulations to ensure that crypto businesses operate legally and pay taxes, rather than pursuing criminal prosecution.
Binance officials were reportedly arrested when they came into Nigeria on the government's invitation. However, Binance confirmed that its website and other major crypto exchanges were not accessible to Nigerian users.
The exact details of the investigation have not been disclosed by Zakari Mijinyawa. The Peoples Gazette reported that a Binance official called Onanuga's $10 billion claim a lie.
The accusations directly affect the Nigerian economy, with Binance's customers alleged to be responsible for the rapid devaluation of the naira. The government is seeking reparations and damages from Binance, amounting to up to $10 billion, for sabotaging the Nigerian economy.
This is a developing story and more details will be provided as they become available.
- The Nigerian government, led by the Office of the National Security Adviser (ONSA), is investigating Binance, a leading cryptocurrency exchange, over accusations of economic losses and tax evasion, which could potentially devalue the local currency, the naira.
- The allegations against Binance include responsibility for the devaluation of the naira and owing $2 billion in back taxes.
- Last week, Binance placed restrictions on purchasing USDT using Nigeria's currency, a move linked to the ongoing investigation, but later reversed these restrictions.
- Binance is facing scrutiny in various countries, including the Philippines, due to operating without proper licenses.
- Despite the accusations, Nigeria aims to integrate blockchain technology into its economy, with a focus on strengthening regulations to ensure legal crypto businesses pay taxes.
- Binance officials were reportedly arrested when they came to Nigeria for a meeting, but Binance confirmed that its website and other major crypto exchanges were not accessible to Nigerian users.
- The exact details of the investigation have not been disclosed, and Binance has denied claims by Onanuga of $10 billion in sabotage to the Nigerian economy.
