An African country plans to fine Binance $10 billion

According to the BBC report, on March 1, the Nigerian government demanded that Binance pay at least US$10 billion in compensation.

Nigeria’s request comes as Nigeria’s cryptocurrency exchanges have been hit and the country’s currency has devalued. Nigeria allegedly accused Binance of profiting from “illegal transactions” in the country.

Currently, Binance is under investigation in Nigeria, and Binance executives were detained in Nigeria earlier this week.

On the same day, crypto trading platform Binance has removed the Nigerian currency, the naira, from its peer-to-peer (P2P) functionality.

Binance users in Nigeria complained and expressed concerns about its development on social platform X.

Binance’s delisting of the naira from its P2P marketplace comes as Nigerian authorities claim that the platform caused the naira to devalue.

Bayo Onanuga, adviser to the Nigerian President, previously said that if Binance is not stopped, it will destroy the Nigerian economy because of the arbitrary fixing of foreign exchange rates.

With the rapid depreciation of the naira currency leading to inflation of up to 29.9% in the past 30 years, the government decided to focus on establishing platforms that provide cryptocurrency services. The volume and value of transactions on these platforms have partly shaped the informal exchange rate of the naira.

Crypto users in Nigeria had earlier reported difficulty accessing crypto exchange websites including Binance, OctaFX and others .

A few days later, Binance placed a limit on the selling price of USDT on the P2P platform, preventing traders from selling USDT for more than 1,802 naira per USDT.

According to the Financial Times, two Binance executives were detained in Nigeria. People familiar with the matter revealed that the executives flew to Nigeria after Nigeria decided to ban several cryptocurrency trading websites last week, but they He was detained by the country's national security adviser's office and his passport was confiscated.

It can be said that Binance is one of the largest cryptocurrency exchanges in the world, but in Nigeria, it has encountered unprecedented difficulties.

Nigeria is Africa’s largest economy and one of the countries with the highest cryptocurrency usage in the world. However, the country's currency, the naira, has been falling over the past few years, leading to soaring inflation and foreign currency shortages.

Nigerian authorities view cryptocurrency exchanges as one of the main causes of the naira’s depreciation, as they provide a channel to bypass the official exchange rate while also threatening the country’s financial stability and security.

Source: Web3 Lightning Rod

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