• Sun. May 26th, 2024

Nigerian Government Files $10 Billion Tax Evasion Fine Against Binance Executives: Fears of Diplomatic Crisis with US and UK as Crypto Exchange Banned in Nigeria

BySamantha Jones

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

In Nigeria, the government has charged two senior executives of Binance, the world’s largest cryptocurrency exchange, with tax evasion totaling $26 billion. The Nigerian government is demanding that Binance pay a fine of $10 billion for the tax evasion allegations against it. One of the executives was able to escape arrest after reports emerged in the state.

Despite Nigeria being a leading country in the adoption of digital currencies and every 1 in 10 Nigerian citizens owning crypto, the Nigerian government has banned the use of Binance. This move has sparked controversy as crypto has become increasingly popular in Nigeria due to its perceived ability to preserve value during times of economic instability, such as devaluation of local currency naira. The government is trying to stop capital from flowing out of the country by limiting measures such as cash withdrawals from ATMs.

The recent cancellation of fuel subsidies by new government led to a drop in purchasing power among Nigerian consumers further exacerbating economic challenges faced by the country despite its strong economy on paper. Citizens have turned to digital currencies as an alternative to faltering naira and this has made Nigeria one of largest trading volumes in decentralized crypto market with president’s spokesman expressing concerns about independent and lower exchange rate established by crypto exchanges like Binance further devaluing local currency.

Binance has had several run-ins with regulators including a tax evasion case in US which resulted in settlement and ban on activity in Western countries. Recent arrests without charges and global arrest warrant issued for escaped executive have raised fears about potential diplomatic crisis with US and UK governments, while one manager remains in custody Interpol continues to investigate ongoing situation between governments and cryptocurrency exchange giant Binance.

By Samantha Jones

As a content writer at newsnnk.com, I weave words into captivating stories that inform and engage our readers. With a passion for storytelling and an eye for detail, I strive to deliver high-quality and engaging content that resonates with our audience. From breaking news to thought-provoking features, I am dedicated to providing informative and compelling articles that keep our readers informed and entertained. Join me on this journey as we explore the world through the power of words.

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