The Nigerian government has escalated its legal battle against Binance, the world’s largest cryptocurrency exchange, demanding $81.5 billion for economic damages.
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 seeks a 26.75% interest rate on this amount, based on the Central Bank of Nigeria's lending rate. In addition to tax evasion claims, officials argue that Binance’s platform has contributed to currency speculation, demanding $79 billion in compensation.
Nigeria’s Crackdown on Crypto
Binance is not the only crypto platform under scrutiny in Nigeria, as the country tightens regulations on digital assets. The Economic and Financial Crimes Commission has charged Binance with five money laundering-related counts and four tax-related offenses.
Binance’s Response
Binance denies the accusations, stating that it does not operate a registered entity in Nigeria. The company halted all naira transactions in March 2023, but authorities argue that Binance has a 'significant economic presence' in the country, making it liable for taxes.
The lawsuit in Nigeria adds to Binance’s legal challenges, potentially influencing global crypto regulation. The outcome could set a precedent for how governments handle cryptocurrency activities.
