The Nigerian government has intensified its legal battle against the world’s largest cryptocurrency exchange, Binance, demanding $81.5 billion in damages over alleged tax evasion and economic fallout.
Allegations Against Binance
Nigeria’s Federal Inland Revenue Service has accused Binance of failing to pay $2 billion in taxes between 2022 and 2023 with a 26.75% interest rate. Officials further claim that Binance's platform facilitated currency speculation, causing severe economic harm, and are demanding an additional $79 billion. This legal confrontation began after Nigerian authorities detained two Binance executives in February, although tax charges were later dropped.
Nigeria’s Crackdown on Crypto
Binance is not the only crypto platform under scrutiny in Nigeria, as the country tightens regulations on digital assets, accusing platforms of enabling money laundering and tax evasion. Earlier, Nigeria’s Economic and Financial Crimes Commission charged Binance with five counts related to money laundering and four tax-related charges, including non-payment of VAT and corporate income tax.
Binance's Response and Global Implications
Binance has denied the accusations, stating it doesn’t operate a registered entity in Nigeria and suspended all naira transactions in March 2023. However, Nigerian authorities argue that Binance has a 'significant economic presence' making it liable for corporate taxes. The Nigerian lawsuit adds to Binance’s growing global legal challenges, including recent difficulties in the U.S.
The lawsuit against Binance in Nigeria is a critical point in global crypto regulation, with outcomes potentially influencing how governments deal with cryptocurrency exchanges and regulatory approaches worldwide.
