Crypto Crackdown in Nigeria: Binance Accused of Tax Evasion!

Published by

Elena R

July 13, 2024

In a landmark move, a Nigerian court will begin proceedings against Binance on October 11 for alleged tax evasion, as reported by Reuters. The cryptocurrency giant faces four counts, including failing to register with Nigeria’s Federal Inland Revenue Service for tax purposes.

Binance Pleads Not Guilty

At a hearing before Judge Emeka Nwite on Friday, Binance representative Ayodele Omotilewa pleaded not guilty to all charges. Omotilewa urged the court to dismiss the case, drawing parallels to the recent dismissal of charges against Binance executives Tigran Gambaryan and Nadeem Anjarwalla, which he argued similarly lacked substance.

In June, the Federal High Court in Abuja cleared Gambaryan and Anjarwalla of tax evasion charges. Gambaryan, a U.S. citizen, and Anjarwalla, a British Kenyan who has since returned to Kenya, still face separate money laundering charges, which they both deny.

Judge Nwite has adjourned the case until October to allow for further review of the evidence. This period will give both the defense and the prosecution additional time to strengthen their arguments.

Nigeria and Crypto – A Troubled Relationship

Nigeria has pointed to Binance as a factor in its currency struggles. With crypto websites becoming popular platforms for trading the Nigerian Naira amidst chronic dollar shortages, the Naira has plummeted to record lows.

Central Bank’s Crypto Crackdown

In a broader effort to regulate crypto activities, the Central Bank of Nigeria (CBN) has instructed fintech companies to identify and report accounts involved in cryptocurrency transactions. A central bank official recently contended in court that only banks and authorized financial institutions should handle Binance-related transactions, underscoring the government’s stance on controlling cryptocurrency activities.

Also Read: Binance vs SEC: Here’s Why July 29th Will Be a Game Changer!

The battle between crypto and traditional finance heats up! Where do you stand?

Elena R

Elena is an expert in technical analysis and risk management in cryptocurrency market. She has 10+year experience in writing - accordingly she is avid journalists with a passion towards researching new insights coming into crypto erena.