- Bayo Onanuga, a Nigerian government official, has denied rumors of a $10 billion fine on Binance, saying the claims were a mistake.
- The People’s Gazette said Onanuga clarified that a final decision on fining Binance has not been made yet.
- Binance is being looked into more closely by the government in Nigeria because they want to make sure the country’s money and banking system are safe.
A person from the Nigerian government talked about rumors of Binance having to pay a $10 billion fine. Bayo Onanuga, who works for the Nigerian President, said that the BBC got the facts wrong and misquoted him.
The explanation came after the People’s Gazette reports talked about Onanuga’s statement. Onanuga said that people misunderstood his earlier comments, despite what many people thought. He said he did not make a decision to give Binance a fine or say how much it would be. He says we are still talking about a possible fine, but no final decision has been made yet.
Binance is being investigated by the Nigerian government
The talk about the supposed fine comes as cryptocurrency exchanges like Binance are facing more rules in Nigeria. This is part of the government’s plan to protect the Nigerian money and keep the country’s financial system steady. Binance stopped trading naira on its P2P trading service at the same time as the Nigerian government started cracking down on crypto exchanges.
The P2P trading feature became popular in Nigeria after the government banned crypto transactions during former President Muhammadu Buhari’s time in office. This feature lets users trade directly with each other without any middlemen. Binance is being watched more closely because the Central Bank of Nigeria is worried about money moving in a suspicious way through Binance in Nigeria. The head of the CBN, Olayemi Cardoso, said that in 2023, Binance helped move $26 billion into Nigeria from unknown sources and users. This raises concerns about possible financial risks.
Laws and rules in Nigeria about digital money
Despite the rules and difficulties that cryptocurrency platforms are dealing with, Nigeria is accepting of digital currencies. In December 2023, the CBN allowed banks to start working with crypto again after a two-year ban. They also made rules for overseeing companies that manage virtual money. Additionally, in 2022, Nigeria was the second country to create a digital currency through its central bank. The Africa Stablecoin Consortium also introduced a stablecoin called cNGN, which is pegged to the naira, in a regulated testing environment by the Central Bank of Nigeria in February.
Nigeria is being careful but also moving forward in using digital money in its financial system. They are trying to be innovative but also making sure it’s regulated. As things change, the Nigerian government and Binance are working together to figure out how to regulate cryptocurrency in a way that keeps the financial system safe and steady.
Warning: This information is not advice for buying or selling stocks.
