Investigation of Binance underway, affirmed by Nigerian authority
Nigeria Investigates Global Cryptocurrency Exchange Binance Over Tax Evasion and Regulatory Non-Compliance
The Office of the National Security Adviser (ONSA) of Nigeria is investigating global cryptocurrency exchange Binance over allegations of tax evasion, regulatory non-compliance, and economic manipulation.
The investigation, led by the ONSA's head of strategic communications, Zakari Mijinyawa, was confirmed by him to Nigerian news outlet Premium Times. The probe focuses on Binance's activities in Nigeria, including accusations of allowing customers to arbitrarily fix United States dollar to naira exchange rates.
Last week, Binance placed restrictions on purchasing USDT using the Nigerian currency, a move that raised concerns among Nigerian regulators and policymakers. Binance confirmed that its website and other major crypto exchanges were not accessible to Nigerian users.
The Nigerian government argues that Binance owes corporation tax due to its economic activities in Nigeria, despite the company's complex registration history and current lack of registration in any country. The government is seeking reparations and damages from Binance, with an alleged amount of up to $10 billion, as claimed by Bayo Onanuga.
However, this $10 billion claim was disputed by a report by The Peoples Gazette, citing a Binance official.
The investigation is an inter-agency investigation, as per Zakari Mijinyawa's statement. Binance officials were arrested in Nigeria upon the government's invitation, as confirmed by Bayo Onanuga to the BBC.
In addition to the tax evasion and regulatory non-compliance allegations, the Nigerian government is concerned about Binance's significant economic presence in Nigeria despite not being registered there. These factors have raised concerns about possible manipulation of the forex market and economic sabotage.
Binance is in contact with regulators and policymakers discussing "managing the evolving landscape of cryptocurrency." The federal government of Nigeria has also directed telecommunications service providers to restrict access to cryptocurrency exchanges operating within the country.
Meanwhile, allegations connected to cryptocurrency fraud involving Nigerian-linked scammers have resulted in U.S. government seizures of illicit crypto assets from Binance accounts, worth approximately $7.1–7.5 million. However, these fraud cases appear separate from the Nigerian government's direct investigation into Binance for market manipulation or economic sabotage.
In summary, the Nigerian government's probe into Binance focuses on tax evasion and the company's regulatory non-compliance, framed within broader economic concerns including forex market stability and economic sovereignty, rather than direct proven acts of sabotage by Binance itself. Zakari Mijinyawa declined to provide further information on the development of the investigation.
- The Office of the National Security Adviser (ONSA) of Nigeria is investigating Binance, a global cryptocurrency exchange, over allegations of tax evasion, regulatory non-compliance, and economic manipulation.
- The investigation, led by the ONSA's head of strategic communications, Zakari Mijinyawa, focuses on Binance's activities in Nigeria, including accusations of allowing customers to arbitrarily fix exchange rates.
- Last week, Binance placed restrictions on purchasing USDT using the Nigerian currency, prompting concerns among Nigerian regulators and policymakers.
- The Nigerian government argues that Binance owes corporation tax due to its economic activities in Nigeria, despite the company's complex registration history and current lack of registration in any country.
- In addition to tax evasion and regulatory non-compliance concerns, the Nigerian government is also worried about Binance's significant economic presence in Nigeria despite not being registered there.
- Binance is in contact with Nigerian regulators and policymakers, discussing the management of the evolving landscape of cryptocurrency within the African industry and economy.
- The federal government of Nigeria has directed telecommunications service providers to restrict access to cryptocurrency exchanges operating within the country, as part of their efforts to regulate the digital assets sector and protect the general news, finance, business, politics, and technology landscape of Africa, including Nigeria.
