The cryptocurrency trading platform, Binance, has been hit with a $10 billion fine by the federal government of Nigeria for allegedly impacting the nation’s forex crisis.
President Bola Tinubu’s special adviser on information and strategy, Bayo Onanuga, who disclosed this in an interview with the BBC on Friday morning, claimed that Binance made significant profits from its “illegal transactions,” while the country sustained enormous losses.
Onanuga posited that Binance is not present or registered in Nigeria, adding that users were arbitrarily fixing dollar-naira exchange rates on the platform, which had a detrimental effect on the value of the local currency.
He went on to say that the Binance team had already stopped naira-related transactions on the platform and was working with the Nigerian authorities by giving helpful information.
Onanuga stated that the government has been observing the detrimental effects of Binance’s operations in Nigeria, adding that, “The platform fixes the exchange rate in Nigeria, which is illegal. The Central Bank of Nigeria is the only authority that can fix the exchange rate for Nigeria.
“Binance harbours a lot of people who fix exchange rates which impacted the country badly at a time when the government is trying to stabilize the economy.”
Earlier, Onanuga had urged the Central Bank of Nigeria (CBN) and the Economic and Financial Crimes Commission (EFCC) to take action against platforms that attempt to manipulate the value of the naira using cryptocurrency exchange platforms by Mr. Bayo Onanuga, President Bola Tinubu’s special assistant on information and strategy.
This follows the news that the value of the naira is currently trading at N1680/$ on a cryptocurrency trading platform.
He added that Binance influenced the increase in foreign exchange rates through currency speculations which made the Naira value to fall by almost 70% in recent months.