Key Notes

Key Notes:

The Nigerian government has filed legal charges against Binance.The country demands more than $81 billion in fines, including tax charges.Crypto trading platforms are exiting the Nigerian market amid regulatory concerns.

Nigeria has sued Binance, the world’s largest crypto exchange, demanding $81.5 billion in damages. According to The Guardian, the government blamed Binance for the country’s economic struggles and currency crisis.

Officials claimed the exchange’s operations in the country harmed the economy. The lawsuit, filed in a Nigerian court, seeks $79.5 billion for economic losses and an additional $2 billion for unpaid taxes.

The Nigerian government believes Binance was key in destabilizing the naira by allowing illegal trading. The report revealed that this led to sharp currency fluctuations and failure to comply with tax laws.

The Federal Inland Revenue Service (FIRS) says Binance does business in Nigeria and must pay corporate taxes. The revenue agency wants Binance to pay income taxes for 2022 and 2023 and a 10% fine on unpaid taxes.

It also demands a 26.75% interest rate based on the Central Bank’s lending rate. This is not the first time Binance has been in trouble with Nigerian authorities. The exchange is already facing four tax evasion charges in the country.

Officials accused it of not paying VAT and company income tax, failing to file tax returns, and letting users avoid taxes on its platform. Due to regulators’ pressure, Binance stopped all transactions in naira in March 2024.

However, it previously stated that it worked with Nigeria’s Federal Inland Revenue Service to resolve tax concerns. The company is also dealing with separate money laundering charges from Nigeria’s anti-graft agency, which it has denied.

The lawsuit against Binance comes as the country plans to tax crypto transactions. Coinspeaker highlighted that the government hopes to increase revenue and better control the digital asset market.

Last year, Nigerian authorities detained Binance executives Tigran Gambaryan and Nadeem Anjarwalla. They were accused of money laundering and currency manipulation. Anjarwalla escaped custody in March 2024, and discussions about his extradition soon followed.

Meanwhile, Gambaryan remained detained until October 2024, which caused a global commotion. Coinspeaker reported that the Nigerian government later dropped the charges against him. They cited health concerns and diplomatic reasons, allowing him to return to the United States for medical treatment.

Meanwhile, Coinspeaker noted that renowned trading firm OKX exchange closed down its crypto operations in the country due to regulatory challenges.

Nigeria’s recent lawsuit against Binance is one of the toughest government actions against a crypto exchange. If Nigeria wins the case, Binance may have to pay billions in fines and face more restrictions. The over $81 billion fine far outstrips the $4.2 billion it paid to the US Department of Justice (DoJ) over banking violations in December 2023.

As the case continues, crypto traders and investors in Nigeria are unsure about what will happen to the future of digital assets in the country.

Disclaimer: Coinspeaker is committed to providing unbiased and transparent reporting. This article aims to deliver accurate and timely information but should not be taken as financial or investment advice. Since market conditions can change rapidly, we encourage you to verify information on your own and consult with a professional before making any decisions based on this content.

Benjamin Godfrey is a blockchain enthusiast and journalist who relishes writing about the real life applications of blockchain technology and innovations to drive general acceptance and worldwide integration of the emerging technology. His desire to educate people about cryptocurrencies inspires his contributions to renowned blockchain media and sites.

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