Nigeria has intensified its legal stand against the world's largest cryptocurrency exchange, Binance, accusing it of tax evasion and causing economic damage.
Allegations Against Binance
Nigeria’s Federal Inland Revenue Service has accused Binance of failing to pay $2 billion in taxes from 2022 to 2023 and demands a 26.75% interest based on the Central Bank of Nigeria’s lending rate. Additionally, officials contend that Binance's activities have led to currency speculation, causing instability for the naira, and are seeking $79 billion in economic damages. This legal battle commenced after Nigerian authorities detained Binance executives Tigran Gambaryan and Nadeem Anjarwalla in February over allegations related to destabilizing the naira.
Nigeria’s Crackdown on Crypto
Binance is not the only crypto platform under scrutiny in Nigeria. The country has been tightening regulations on digital assets, accusing exchanges of enabling money laundering and tax evasion. Nigeria’s Economic and Financial Crimes Commission has filed charges against Binance for non-payment of VAT, corporate income tax, and allegedly facilitating tax evasion.
Binance’s Response and Global Implications
Binance denies the allegations, stating that it does not have a registered entity in Nigeria. The company has emphasized halting naira transactions in March 2023 and is cooperating with local authorities to resolve tax issues. However, Nigerian authorities maintain that Binance's significant economic presence makes it liable for corporate taxes. The global significance of this lawsuit could set a precedent for how governments approach crypto regulation.
The lawsuit in Nigeria adds to Binance's global challenges, potentially setting a precedent for future cryptocurrency regulation by governments.
