A Nigerian court has postponed the tax evasion case against Binance, allowing the tax authority more time to respond to the company's legal filings.
New Demands from Nigeria's Federal Tax Agency
The Federal Inland Revenue Service (FIRS) is demanding $2 billion in unpaid taxes and $79.5 billion in damages, claiming that Binance’s operations in Nigeria caused economic harm. The agency asserts that Binance has a 'significant economic presence' in the country and should have paid corporate taxes for 2022 and 2023, plus a 10% yearly penalty on overdue amounts.
Reasons for the Postponement of the Court Hearing
Binance's court case in Nigeria has been delayed because the company argued that it wasn’t properly notified. Since Binance is based in the Cayman Islands and not physically present in Nigeria, its lawyer stated that the tax authority required special permission to send legal papers by email. The court has postponed the case to provide the tax agency time to formally respond to Binance’s challenge.
Stricter Regulation of Cryptocurrency Transactions in Nigeria
Nigeria is cracking down on crypto platforms, accusing them of disrupting the country's currency market. In 2024, two Binance executives were detained as part of an investigation into naira-based crypto trades. Authorities claim Binance and similar platforms hurt the official exchange rates and facilitate capital flight from the country.
The next key court hearing set for April 30 will address Binance’s legal challenge in its tax case. This ongoing conflict highlights the struggle between fast-paced cryptocurrency innovation and strict financial regulation in countries like Nigeria.
