The Nigerian government has escalated its legal battle against Binance, alleging tax evasion and contributing to the depreciation of the local currency.
Allegations Against Binance
Nigeria’s Federal Inland Revenue Service has accused Binance of failing to pay $2 billion in taxes from 2022 to 2023. The agency also seeks a 26.75% interest on the unpaid amount. Officials argue that Binance facilitated currency speculation, leading to severe economic damage, and are demanding $79 billion in compensation. This legal battle began with the detention of two Binance executives in February, following which charges were temporarily dropped, but the new lawsuit signals ongoing disputes.
Binance’s Response
Binance denies the accusations, stating it does not operate a registered entity in Nigeria, and highlights efforts to comply with local regulations. However, Nigerian authorities claim the company has a significant economic presence and is liable for taxes.
Global Implications for Binance
The lawsuit in Nigeria adds to Binance’s mounting legal troubles. In the U.S., the platform faced fiat deposit restrictions due to regulatory issues. Despite challenges, Binance remains dominant in the crypto market, and the outcome of the Nigerian case could influence global crypto regulation.
The legal conflict in Nigeria is one of several challenges Binance faces amidst growing global regulatory trends. The outcome may set a significant precedent in international crypto regulation.
