Connect with us

IN THE NEWS

Binance: CBN fines $10 Billion on the firm.

Nigeria, a big player in Africa’s economy and a leading adopter of cryptocurrencies globally, is currently in a tense situation with Binance, the world’s largest cryptocurrency exchange. The Nigerian government is asking Binance to pay a hefty $10 billion, accusing the exchange of messing with foreign exchange rates and helping with illegal activities.

What Nigeria Accuses Binance Of:

  • Messing with Exchange Rates: The Nigerian government says Binance did things that caused the Nigerian Naira (the country’s money) to lose a lot of its value quickly. They say Binance did this by trading money in a way that made the Naira worth less compared to other currencies.
  • Handling Sketchy Money: The head of Nigeria’s Central Bank, Olayemi Cardoso, says Binance Nigeria moved around $26 billion in money that couldn’t be traced, which worries them about money laundering and supporting terrorism.

The Situation in Numbers:

  • Cryptocurrency Boom: Nigeria has seen a big rise in using cryptocurrencies. Transactions with crypto made up around 12% of the country’s total money dealings in the year leading to June 2023.
  • Naira’s Big Drop: The Nigerian Naira’s value dropped a lot, from 460 Naira being worth $1 a year ago to now needing almost 1,600 Naira to buy $1.

Understanding the Problems:

  • Confusing Rules: Cryptocurrencies aren’t banned in Nigeria, but the government says companies that handle them need to sign up. They say Binance didn’t follow these rules.
  • Market Changes vs. Bad Actions: While the government blames Binance for making the Naira worth less, some say the Naira’s drop might also be because the President decided to let the Naira’s value change freely.
  • Stopping Illegal Money Moves: The Nigerian government is worried that people might use cryptocurrencies to do bad things like moving money illegally. They say a report from Nigeria’s Financial Intelligence Unit shows this might be happening.

What Could Happen Next:

  • Crypto Platforms Shut Down: The Nigerian government has stopped some cryptocurrency platforms, including Binance, Coinbase, and Kraken, to try and make the Naira’s value more stable. This has upset Nigerians who use these platforms to buy and sell crypto.
  • What Could Happen to Binance: Binance hasn’t said anything about the accusations yet, so it’s not clear what might happen. They might talk with the government and agree on something, they might decide to leave Nigeria, or they might take the matter to court.

Looking Forward: Finding the Right Balance

The situation in Nigeria shows how hard it is to control cryptocurrencies. Finding the right balance between making sure things are safe and letting innovation happen is important. Here are some things to think about:

  • Clear Rules: Making clear and fair rules for how cryptocurrency companies should operate will help everyone understand what’s expected.
  • Working Together: Everyone involved—regulators, cryptocurrency companies, banks, and people who use crypto—should talk to each other to solve problems and make sure things are done right.
  • Teaching People: It’s important to help people understand what cryptocurrencies are all about so they can make smart choices about using them.

In Conclusion:

The demand for $10 billion from Binance is a big deal with lots of consequences. Whether Nigeria can make rules that help both innovation and safety is still unclear. This situation will be watched closely by people all over the world who are interested in cryptocurrencies, as it could set an example for how other countries deal with these new kinds of money.

Facebook Comments

TAGiAfrica™ is a Web3 Magazine that is documenting the African journey in the crypto and blockchain industry for over a decade. We are the Pan-African magazine that covers business, technology, Blockchain, Crypto and Innovation.We are the essential resource for anyone who wants to stay up-to-date on the latest trends in Africa. The magazine is also a valuable resource for businesses that are looking to expand into Africa and committed to promoting African entrepreneurship and innovation.

Advertisement Build your website!

DOWNLOAD YOUR E-MAG HERE

Watch Our Channel

Advertisement

Trending

Blockchain4 days ago

FG Re-Arraigns Binance on Tax Evasion Charges

The Federal Government of Nigeria has re-arraigned the cryptocurrency exchange platform Binance on charges of tax evasion. This move is...

Featured4 days ago

“Chatter App Is Live,” Davido Jubilates as He Launches His Own Social Media Platform

Nigerian superstar Davido has officially launched his own social media platform, Chatter, marking a significant milestone in his career and...

How to Startup5 days ago

i’SUPPLY Raises Pre-Series A Funding Round, Securing $2.5 Million to Expand Tech-Enabled Pharmaceutical Distribution Platform

i’SUPPLY, a leading Egyptian startup specializing in tech-enabled pharmaceutical distribution, has successfully closed a pre-Series A funding round, bringing its...

APPLY NOW5 days ago

Open Startup Launches OST Programme to Accelerate African Startup Ecosystem

Open Startup (OST) is proud to announce the launch of the OST Programme, a groundbreaking initiative developed in collaboration with...

APPLY NOW7 days ago

10k2Startup Invites African Startups to Apply for Funding and Strategic Support

10k2Startup, an innovative initiative founded by Julius Nkansah Owusu-Kyerematen, head of multi-channel mid-market skills at Google, announces the launch of...

IN THE NEWS1 week ago

Telecom Egypt and 4iG Group Join Forces to Build Egypt’s Future-Proof Fibre Network

Telecom Egypt and Hungarian IT solutions provider 4iG Group are embarking on a transformative joint venture to construct a state-of-the-art...

How to Startup1 week ago

Nala Raises $40 Million to Expand Beyond Remittances, Become Africa’s Cross-Border Payments Leader

Nala, a remittance startup rapidly evolving into a comprehensive payments platform, has secured a massive $40 million equity investment in...

IN THE NEWS1 week ago

Botswana Launches First Satellite BOTSAT-1 Set for Launch in 2025

Botswana is taking a giant leap into the cosmos with the development of its first-ever satellite, BOTSAT-1. This ambitious project,...

Crypto1 week ago

Nigeria plans Indigenous Blockchain “Nigerium” for Data Sovereignty and Security

Nigeria is taking a significant step towards data security and national sovereignty with the proposed development of its own blockchain,...

IN THE NEWS3 weeks ago

Flutterwave Streamlines Workforce: 30 Employees Let Go Amidst Strategic Shift

In a move that has sent ripples through the African fintech industry, Flutterwave, the continent’s leading payments technology company, has...

IN THE NEWS3 weeks ago

Andela Unveils Code Playback Feature, Revolutionizing Tech Recruitment in Africa

Andela, a renowned platform connecting businesses with top-tier remote software developers across Africa, has taken a significant step forward in...

IN THE NEWS3 weeks ago

Nigeria Content Creators Set to Gather at the Content Con Lagos

Nigeria Content Creators Set to Gather at the Content Con Lagos. Get ready for the most anticipated event in the...

East Africa1 month ago

Bolt and Uber Threaten Kenya Exit Over Proposed Taxes

[Bolt and Uber] Kenya’s vibrant ride-hailing scene, a symbol of the nation’s burgeoning digital economy, is facing a potential downpour....

East Africa1 month ago

Rwanda: Going Digital with its own Currency in 2026

Rwanda, a nation renowned for its breathtaking landscapes and remarkable resurgence after a devastating conflict, is now setting its sights...

East Africa1 month ago

Kofa Powers Up: E-Motorcycle Expansion to Kenya and Togo

Ghanaian startup Kofa, a pioneer in battery network solutions, is set to expand its innovative battery swapping solution to Kenya...

IN THE NEWS1 month ago

Seamfix Expands: Digital ID Revolution Coming to 5 More African Countries

Nigerian digital identity startup Seamfix is set to expand its operations to Ghana, Kenya, South Africa, Ethiopia, and Uganda following...

IN THE NEWS1 month ago

Kimberly-Clark Wraps Up Nigerian Exit After Layoffs

Huggies diaper maker Kimberly-Clark is swiftly shutting down its Nigerian operations following its exit announcement last week. Nearly 90% of...

IN THE NEWS1 month ago

Copia Global Sacks 1000 Employees and Restructuring

Kenyan e-commerce startup Copia Global, despite laying off over 1,000 employees this week, remains determined to stay afloat. The company...

IN THE NEWS1 month ago

Bolt Introduces Bidding System for Drivers and Riders in Nigeria

Bolt, a ride-hailing company offering services in over 45 countries, including Nigeria, has shaken things up in the Nigerian market...

READ OUR EDITORIAL PICK

Africa Africa
East Africa2 months ago

Breaking Free from Waste: Africa’s Fight for a Sustainable Future Through Minimalism

In today’s fast-paced world, the concepts of minimalism and sustainable living have emerged as powerful antidotes to consumerism and environmental...

Blockchain2 months ago

AFRICAN SUPPLY CHAIN: EXPLORING BLOCKCHAIN APPLICATIONS BEYOND BANKING

The key to overcoming the challenges in logistics and supply chain management (SCM) operations in Africa lies in standardizing indigenous...

AFRICA AFRICA
Editorial2 months ago

Top 10 Lucrative African Tech Sectors to Invest in 2024

Africa has been experiencing a rapid growth in technology in recent years, with many opportunities for investors in the tech...

Artificial Intelligence3 months ago

Llama 3: Meta’s AI Assistant Gallops into Africa, Bringing Connection and Controversy

Meta, formerly known as Facebook, is a tech giant synonymous with social connection. Boasting over 3 billion monthly active users...

Editorial3 months ago

SUSTAINABLE INVESTING: ALIGNING YOUR PORTFOLIO WITH ENVIRONMENTAL AND SOCIAL CONCERN

Investors have multiple strategies at their disposal to construct and broaden their portfolios, aiming for financial success. One emerging trend...

Editorial3 months ago

FINANCIAL LITERACY FOR ALL: EMPOWERING INDIVIDUAL TO MAKE INFORMED DECISIONS

Financial literacy entails grasping and proficiently applying a range of financial competencies, such as managing personal finances, crafting budgets, and...

Editorial3 months ago

Investing in a Volatile Market: Strategies for Success in 2024

In today’s world, investing in a volatile market can be a daunting task. With geopolitical tensions simmering, economic uncertainties looming,...

Editorial3 months ago

MAKING EDUCATION ACCESSIBLE FOR NIGERIANS: BRIDGING THE GAP IN GLOBAL EDUCATION

Education is a fundamental entitlement for all individuals, irrespective of their situation or origin. However, in Nigeria, the endeavor to...

Editorial3 months ago

Pandemics: A Looming Shadow – Have We Learned Enough Since the Last Crisis?(2024 Updated)

The specter of pandemics has haunted humanity for millennia. From the bubonic plague’s merciless scythe that ravaged Europe in the...

health health
Editorial3 months ago

Empowering Your Health: A Guide to Thriving in the Digital Age (2024 Update)

The digital age has ushered in a revolution in how we access information, and the realm of nutrition and health...