The Nigerian government intensifies its legal battle against Binance, the world's largest cryptocurrency exchange, demanding $81.5 billion for alleged tax evasion and impact on the naira's exchange rate.
Allegations Against Binance
Nigeria's Federal Inland Revenue Service accused Binance of failing to pay $2 billion in taxes from 2022 to 2023, demanding a 26.75% interest rate based on the Central Bank of Nigeria's lending rate. In addition to tax evasion claims, officials argue Binance caused economic harm through currency speculation, destabilizing the naira, and are seeking an additional $79 billion in compensation.
Nigeria's Crackdown on Crypto
Binance is not the only platform under scrutiny in Nigeria. The country is tightening regulations on digital assets, accusing exchanges of facilitating money laundering and tax evasion. Nigeria’s EFCC previously charged Binance and its executives with money laundering and tax-related offenses, including failure to pay VAT and corporate income tax.
Binance's Response and Global Implications
Binance denies the allegations, asserting it does not operate as a registered entity in Nigeria. It also noted measures taken to comply with regulations, including halting naira transactions in March 2023. Nevertheless, Nigerian authorities claim Binance has a 'significant economic presence' in the country, making it liable for corporate taxes.
The situation in Nigeria adds to Binance's global legal challenges, including in the U.S., where the company already faced significant regulatory hurdles. The outcome in Nigeria may influence how governments regulate cryptocurrencies moving forward.
