Nigeria Charges Binance with Tax Evasion

Nigeria’s Federal Inland Revenue Service (FIRS) has officially lodged charges against Binance, the globe’s leading cryptocurrency exchange, citing four instances of tax evasion. The allegations, formally presented at the Federal High Court in Abuja, are detailed under the case reference FHC/ABJ/CR/115/2024.

These charges encompass the failure to remit Value-Added Tax (VAT) and company Income Tax, neglecting to submit tax returns, and facilitating customers in eluding taxes via its platform.

This legal action unfolds against a backdrop of heightened governmental scrutiny in Nigeria, where authorities have voiced concerns over Binance’s handling of substantial sums suspected to be associated with illicit activities, alongside its purported impact on the exchange rate of the domestic currency, the naira.

Escaped Executive and Escalating Government Scrutiny

In a significant development, the Nigerian government’s intensified focus on Binance has resulted in the detention of two of its executives, one of whom, Nadeem Anjarwalla, is said to have managed to evade custody.

Nigeria Charges Binance with Tax Evasion
Detention of Binance executives and allegations of unlawful operations underscore Nigeria’s efforts to regulate crypto activities.

This move forms part of a wide-ranging investigation into the activities of the exchange within Nigeria, amidst allegations spanning currency manipulation, tax evasion, and unlawful operations.

Olayemi Cardoso, Governor of the Central Bank of Nigeria, underscored apprehensions regarding the staggering sum of $26 billion, which reportedly flowed through Binance Nigeria in 2023, amidst the backdrop of a currency crisis in the nation’s foreign exchange market.

As part of its efforts to regulate the use of cryptocurrencies and curtail the outflow of the naira, the government has taken measures such as blocking access to cryptocurrency exchanges like Binance.

Navigating Regulatory and Legal Hurdles

The recent detention of Binance executives and the subsequent charges of tax evasion highlight the formidable regulatory and legal obstacles confronting the cryptocurrency exchange in Nigeria.

Nigeria Charges Binance with Tax Evasion
Central Bank of Nigeria investigates $26 billion in untraceable funds flowing through Binance Nigeria, amid currency crisis concerns.

Notably, the country’s Securities and Exchange Commission had earlier asserted that Binance Nigeria lacked the requisite authorization to conduct operations within its jurisdiction.

Against this backdrop, Nigeria, known for its rapid embrace of cryptocurrencies, is actively striving to mitigate illicit financial transactions and bolster economic stability.

The Central Bank of Nigeria, in collaboration with other governmental bodies, is delving deeper into these financial flows, signaling a concerted effort toward comprehensive regulation of cryptocurrency activities.

Michael Manua
Michael Manua
Michael, a seasoned market news expert with 29 years of experience, offers unparalleled insights into financial markets. At 61, he has a track record of providing accurate, impactful analyses, making him a trusted voice in financial journalism.
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