Confusion arose earlier regarding the report of a $10 billion fine purportedly slammed against the cryptocurrency exchange Binance by Nigerian regulators.

However, the country's official spokesperson has now clarified that no penalties have been confirmed against the cryptocurrency exchange.

Initial Report of Binance Investigation

The misunderstanding began with the report that the Office of The National Security Adviser(ONSA), the Economic and Financial Crimes Commission (EFCC), and the CBN was investigating Binance for allowing currency speculation and aiding the devaluation of the country's local currency, naira.

The Central Bank of Nigeria restricts banks from servicing crypto exchanges, yet individual trading remains legal.

The initial report mentioned a fine of $10 billion against Binance but the cryptocurrency exchange has responded that it was not in the mood to discuss the payment of any fines.

Meanwhile, a Nigerian government spokesman, Mr. Bayo Onanuga, clarified that there was no formal communication with Binance regarding the rumoured fine of $10 billion.

“I said our government may impose heavy fines on Binance for what happened,” Mr Onanuga told The Gazette. “I never said Binance had been informed about the fines or that it would definitely be $10 billion.”
 

Responding to the Nigerian regulators, Binance reiterated it has no specific Nigerian operation and remained committed to collaborating with authorities where it offers services.

“We recently discussed ways to resolve issues with Nigeria, but we did not hear any demand for $10 billion,” a Binance official told Peoples Gazette shortly after the BBC said Bayo Onanuga purportedly announced the enormous penalties.

Nigeria Seeks to Regulate Cryptocurrencies

The SEC recently announced a regulatory roadmap for cryptocurrencies in Nigeria, aiming to work with all exchanges to ensure compliance as regulations develop. Fines or penalties would only follow formal investigations for specific violations.

Binance reiterated its commitment to collaborating with local regulators and complying with local rules.  Notably, the confusion hasn't impacted Binance, with trading volumes and users in Nigeria actually growing over 10% since the news emerged.

Exchanges Remain Unregulated

This incident highlights the lack of clear regulation surrounding cryptocurrency trading in Nigeria. Exchanges currently operate in a legal gray area.

Efforts are underway to establish a clear framework as Nigeria develops into a major crypto market. The SEC will likely work proactively with exchanges to help them comply with upcoming regulations.

However, regulation appears imminent with crypto adoption continues to gather momentum in Africa's largest economy.

Clear communication and collaboration between the SEC, EFCC, and exchanges will be crucial for the smooth regulation of the country's vast crypto market.