In a significant development concerning the ongoing naira crisis, the Federal Government is contemplating demanding over $10 billion in compensation from Binance as a penalty for its alleged role in exacerbating the depreciation of the Nigerian currency.
Bayo Onanuga, the Special Adviser to the President on Information and Strategy, disclosed this during a Friday morning interview with the BBC. Onanuga asserted that Binance, a leading cryptocurrency exchange platform, had greatly profited from what he described as “illegal transactions” in Nigeria, resulting in significant losses for the nation.
Highlighting the absence of registration or physical presence of Binance in Nigeria, Onanuga emphasized how some users leveraged the platform to manipulate dollar-naira rates, contributing to the depreciation of the naira.
Providing further clarification on the matter, Onanuga emphasized that discussions on compensation and the contemplation of imposing a fine are ongoing, using the term “may” to indicate the potential course of action.
The Presidential Spokesperson also noted that Binance has been cooperating with Nigerian authorities by furnishing valuable information and has taken steps to suspend naira-denominated transactions.
Additionally, the Office of the National Security Adviser confirmed that Nigerian authorities are currently investigating Binance in connection with these allegations.
This development arises following Binance’s recent plea of guilt and agreement to pay $4.3 billion to settle criminal money laundering charges brought forth by the U.S. Department of Justice, further underscoring the platform’s legal challenges on a global scale.
The potential demand for compensation from Binance represents a significant step by the Federal Government in addressing the adverse impact of cryptocurrency transactions on the stability of the Nigerian currency. As discussions unfold, the outcome of these deliberations will be closely monitored by stakeholders within and outside the country.