The Federal Government of Nigeria has reiterated its openness to cryptocurrency companies, despite an ongoing $80 billion lawsuit against Binance, the world’s largest crypto exchange.
Last month, the Nigerian government filed a lawsuit against Binance, alleging economic losses linked to its operations. The legal action followed the earlier detention of Binance’s US-based staff member, Tigran Gambaryan, in connection with a money laundering investigation. Gambaryan was held for eight months before being released, and the charges against him were later dropped.
Binance, which halted its operations in Nigeria in March 2024, has denied the allegations brought against it.
Government’s Position on Crypto Regulations
Despite the lawsuit, the Minister of Information and National Orientation, Mohammed Idris, clarified in an interview with Semafor on Friday that the legal action is aimed at strengthening regulations, not specifically targeting Binance.
“We are ensuring that no one comes and operates without regulation,” Idris stated, adding that other cryptocurrency companies continue to operate in Nigeria without facing legal action.
The minister also expressed concerns over illicit financial activities in the crypto sector, including terrorism financing, money laundering, and tax evasion.
“It is not just Nigeria. Internationally, it’s also important to address illicit financial flows. You can’t have a huge amount of transactions that do not meet the operations of financial dealers,” Idris said.
Call for International Cooperation
Idris emphasized that addressing financial crimes linked to cryptocurrency requires global collaboration, as illicit financial flows are a concern worldwide.
The government’s position suggests that while Nigeria remains open to cryptocurrency businesses, it is committed to enforcing financial regulations to prevent misuse.
