Nigeria Targets Binance for User Data in Crypto Crackdown

cryptonews.com:

Nigerian authorities have reportedly requested Binance, the largest cryptocurrency exchange, to provide information on its top 100 users in Nigeria, along with its entire transaction history for the past six months, according to a report by the Financial Times on Tuesday.

Nigeria may seek a $10 billion fine from Binance as retribution, as the country believes they “really messed up” the local economy. The authorities reportedly said that the crypto exchange supported “illegal transactions” at the country’s expense. 

According to a report by the Financial Times on March 13, Nigerian authorities are also urging Binance to address any outstanding tax liabilities. This request comes amidst negotiations between Binance and Nigeria, with the government alleging that Binance’s operations have had a significant impact on the local currency, the Nigerian naira.

Binance, along with other cryptocurrency platforms, has emerged as an alternative means for establishing unofficial exchange rates for the naira amid Nigeria’s economic crisis. President Bola Tinubu’s administration has implemented market-friendly reforms and devalued the currency to attract foreign investment. However, inflation has surged to nearly 30%, prompting the government to crackdown on cryptocurrency exchanges.

Furthermore, Bayo Onanuga, the presidential adviser on information and strategy, accused Binance and other crypto platforms of manipulating the naira, contributing to a substantial decline in the local fiat currency. Onanuga suggested the possibility of banning platforms like Binance in the country.

Last month, Nigerian authorities blocked access to cryptocurrency websites and detained two Binance executives who had traveled to Abuja to discuss the