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Binance faces $10 billion fine

Binance faces $10 billion fine

Nigeria charges Binance with illegal operations, demands $10 billion fine amid forex market pressure.

Nigeria has leveled accusations against Binance, one of the leading global cryptocurrency exchange platforms, charging it with illegal operations, lack of licensing, and unauthorized fund transfers that have reportedly pressured the local currency. Last week, Nigerian authorities blocked the online platform of Binance along with other foreign cryptocurrency companies (Forextime, OctaFX, Crypto, FXTM, Coinbase, Kraken) in an effort to halt "constant manipulations in the Forex market."

Amidst these allegations, Nigeria has demanded Binance to pay a hefty fine of $10 billion for illegal cryptocurrency transactions.

On February 28, two Binance executives, one American and the other a British national of Pakistani origin, were detained in Nigeria as they arrived to address the charges against the crypto exchange.

In the wake of measures to stabilize the currency market and preserve the stability of the local Naira currency, the Nigerian government has demanded an astonishing $10 billion fine from Binance for illegal activities that led to currency devaluation.

Given the increasing volume of cryptocurrency transactions in the country, the authorities intend to take a firm stance against Binance.

The National Security Advisor's office (ONSA) has announced an investigation into Binance's activities. Zakari Mijinyawa, the head of communications at ONSA, stated that several government agencies are thoroughly examining Binance's operations in Nigeria.

Bayo Onanuga, the president's information advisor, confirmed the investigation into Binance's alleged involvement in illegal transactions, highlighting its significant impact on Nigeria's financial ecosystem and the Naira's exchange rate.

An official accused the exchange of offering crypto services without registration and licensing in Nigeria. Concerns were raised about Binance's alleged manipulations of the Naira to dollar exchange rate, which reportedly adversely affected the local currency.

In response to these accusations, Binance stated that its operations do not impact the local currency's exchange rate but has suspended deposits and withdrawals in the local currency and all transactions with it. However, the Nigerian government still demands payment of the fine for the alleged damages.

The investigation continues, and the situation becomes tenser as all parties involved await its outcomes, assessing potential implications for crypto regulation worldwide.

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