FOREX CRISIS: FG FINES BINANCE $10 BILLION

The cryptocurrency trading platform Binance has been hit with a $10 billion fine by the federal government for allegedly impacting the nation's forex issue.

In an interview with the BBC on Friday morning, Bayo Onanuga, President Bola Tinubu's special adviser on information and strategy, revealed.

In Nigeria, Onanuga claims, Binance made significant profits from its “illegal transactions,” while the country sustained enormous losses.

According to Onanuga, Binance has neither a presence nor a registration in Nigeria. He said 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.

ALLEGATIONS OF RATE-FIXING AGAINST BINANCE

Onanuga stated that the government has been observing the detrimental effects of Binance's operations in Nigeria.

The exchange rate in Nigeria is fixed by the platform, which is against the law. The sole body with the authority to set Nigeria's currency rate is the Central Bank of Nigeria. Many people who set exchange rates are harbored by Binance, which has a negative influence on the nation during a period when the government is attempting to stabilize the economy. He continued by saying that Binance's currency speculation contributed to the rise in foreign exchange rates, which caused the value of the Naira to drop by about 70% in recent months.

BINANCE IS BEING LOOKED INTO

The cryptocurrency trading platform is the subject of an investigation by Nigerian authorities, as announced earlier on Friday by the Office of the National Security Adviser (ONSA). An ONSA top official confirmed to Premium Times that the security adviser's office is leading an interagency inquiry into Binance's operations, marking the first official acknowledgement of the agency's efforts to stifle the activities of the cryptocurrency platform and others.

The paper cited Zakari Mijinyawa, head of Strategic Communication at the Office of the National Security Adviser, as saying, “I am confirming that the office of the national security adviser, as part of ongoing operations in the foreign exchange market with the CBN and other law enforcement and security agencies, is coordinating an interagency investigation into the operations of Binance.”

Prior to this, Nairametrics had announced the arrest and incarceration of two senior officials from Binance on Wednesday due to suspected manipulations in speculative and foreign exchange trading.

In reaction to Nigeria's recent crackdown on different bitcoin trading platforms, the executives traveled there.

ONANUGA'S DEMAND TO OUTLAW BINANCE AND OTHER

Mr. Onanuga had previously demanded that Binance, Kucoin, and other trading platforms be banned from Nigeria because to allegations that they were responsible for the Naira crisis.

The Central Bank of Nigeria (CBN) and the Economic and Financial Crimes Commission (EFCC) were encouraged by the President's Adviser to move quickly to shut down the cryptocurrency exchanges operating in the nation.

Regarding Nigerians who trade currencies on the Binance website, Onanuga said the following, branding them as unpatriotic: “Binance is a cryptocurrency trading platform that is subject to access restrictions from a number of jurisdictions, including the US, Singapore, Canada, and the UK. It is blatantly manipulating Nigeria's exchange rates and assuming control of the CBN.”According to Data Wallet, Binance is not permitted to conduct any type of regulated business in the United Kingdom by the Financial Conduct Authority.“Due to Binance's failure to satisfy the requirements of the province's securities legislation, services have also been suspended in Ontario, Canada.” The Japanese Financial Services Agency (FSA) forbade Binance from conducting business without the necessary regulatory authorization. Furthermore, the Monetary Authority of Singapore has forbidden Singaporean investors from using Binance's services.

He went on to argue that because Binance is currently in legal hot water with many nations and is upsetting the currency market, it shouldn't be allowed to influence the value of the Naira on its cryptocurrency exchange platform.