• Tue. May 28th, 2024

Binance faces $10 billion fine for tax evasion in Nigeria: Country grapples with its love-hate relationship with cryptocurrency

BySamantha Nguyen

Mar 27, 2024
Crypto has captured the hearts of Nigerians, prompting the government to launch a crackdown

In recent news, the Nigerian government has taken legal action against two senior executives of Binance, the world’s largest cryptocurrency exchange, for tax evasion worth $26 billion. The country is demanding that Binance pay a fine of $10 billion for the charges. One of the managers managed to escape from arrest after reports surfaced in the state.

Nigeria, despite being a leading country in the adoption of digital currencies, has banned Binance due to tax evasion charges. Every 1 in 10 Nigerian citizens owns cryptocurrency, which is similar to countries like Russia or India. The popularity of crypto in Nigeria can be attributed to the devaluation of the naira as citizens seek to preserve the value of their capital.

Ilan Shterek, CEO of Horizon in Altshuler Shachem, explains that Nigeria began limiting cash withdrawals from ATMs a year ago to reduce capital outflow from the country. The Nigerian economy struggles to meet its population’s needs despite being a large African country with a strong economy. The recent cancellation of fuel subsidies by the new government in 2022 has worsened this crisis and led to a drop in purchasing power among Nigerian consumers.

Despite these economic challenges, Nigerians have turned to digital currencies as an alternative to the struggling naira, making Nigeria one of the largest trading volumes in the decentralized crypto market. However, this has raised concerns among authorities who fear that crypto exchanges establish independent exchange rates for digital currencies and further devalue local currencies like naira.

Binance is at the center of this storm as authorities seek to limit its activities and reduce reliance on digital currencies while trying to maintain control over capital flow within Nigeria’s borders. This legal action marks another instance where Binance has had run-ins with regulators worldwide and could potentially lead to diplomatic tensions with countries like America and Britain if Interpol issues a global arrest warrant for one escaped manager.

The situation remains tense as Nigeria grapples with how best to balance its growing economy with its efforts to maintain control over financial transactions within its borders while also dealing with increasing adoption rates for digital currencies across Africa and beyond.

By Samantha Nguyen

As a content writer at newsqwe.com, I am passionate about crafting engaging and informative articles that captivate our audience. With a background in journalism and a keen eye for detail, I strive to deliver content that is not only well-researched but also adds value to our readers' lives. From breaking news stories to in-depth features, I take pride in my ability to tell compelling stories that resonate with our diverse audience. When I'm not typing away at my keyboard, you can find me exploring new cafes, practicing yoga, or getting lost in a good book. I am thrilled to be a part of the newsqwe.com team and look forward to sharing my love for writing with all of our readers.

Leave a Reply