The Nigerian government has taken legal action against two senior executives of Binance, the world’s largest cryptocurrency exchange, over charges of tax evasion totaling $26 billion. The country is demanding that Binance pay a fine of $10 billion for the alleged tax evasion. However, one of the managers managed to escape arrest after reports surfaced in the state.
Nigeria is a leading country in the adoption of digital currencies and has one of the highest rates of crypto ownership in Africa. Every 1 in 10 Nigerian citizens owns crypto, which is similar to countries like Russia and India. This popularity is due to the devaluation of the naira, as citizens seek to preserve the value of their capital. Despite this, Nigeria has banned Binance despite its popularity among its citizens.
According to Ilan Shterek, CEO of Horizon in Altshuler Shachem, 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 needs despite being a large country with a strong economy in Africa. The recent cancellation of fuel subsidies by Nigeria’s new government exacerbated this crisis, leading to a drop in purchasing power among Nigerian consumers.
Despite these economic challenges, Nigerian citizens have turned to cryptocurrencies as an alternative to the failing naira currency. This has made Nigeria one of Africa’s largest trading markets for decentralized cryptocurrencies. However, President Buhari’s spokesman expressed concerns that crypto exchanges establish an independent and lower exchange rate for the naira further devaluing it further
