Nigeria Targets Binance, Upholds Crypto-Friendly Stance

The Nigerian government has reaffirmed its support for the cryptocurrency industry despite ongoing legal disputes with the Binance exchange. The West African nation has characterized its recent actions against Binance as efforts to bolster its regulatory framework and ensure compliance with financial standards.

In a recent interview, Nigeria’s Minister of Information, Mohammed Idris, emphasized the country's crypto-friendly stance amidst pending legal actions against Binance. Since 2024, the Nigerian government has taken measures against Binance's operations within its borders, citing various reasons. Notably, in March 2024, Nigerian authorities demanded $10 billion in compensation from Binance for allegedly manipulating the foreign exchange rate, which led to a 70% devaluation of the Nigerian Naira. This demand came amidst the detention of Binance executive Tigran Gambrayan over allegations of money laundering activities on the platform, which lasted for over eight months.

Most recently, in February 2025, the Nigerian government filed another lawsuit against Binance, seeking $79.5 million in compensation for economic losses allegedly caused by the exchange's illegal operations. Nigerian officials have previously claimed that Binance processed over $26.5 billion in Nigerian transactions without proper registration. The Minister of Information explained that the crackdown on Binance was aimed at preventing cryptocurrency transactions from supporting illicit activities such as money laundering, tax evasion, and terrorism financing. The legal actions were intended to maintain regulatory integrity and prevent crime.

Mohammed Idris stated, "This is part of the effort to strengthen our laws, not to cripple anybody. We are ensuring that no one comes and operates without regulation." He further added, "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."

Amidst this regulatory scrutiny, Binance has closed down its Nigerian market, halting all transactions involving the Naira. However, the Nigerian government remains committed to fostering a thriving crypto industry while adhering to operational and regulatory standards.

In summary, Nigeria's stance on cryptocurrency remains positive despite legal troubles with Binance. The government's actions are aimed at strengthening regulatory frameworks to prevent illicit activities and ensure compliance with financial standards. The closure of Binance's Nigerian market does not signal a shift in the country's crypto-friendly policies but rather a commitment to maintaining a regulated and secure financial environment.

Analysts suggest that Nigeria's approach to regulating the crypto industry could serve as a model for other nations seeking to balance innovation with regulatory oversight. By taking a firm stance against illegal activities while remaining open to the potential benefits of cryptocurrency, Nigeria is positioning itself as a leader in the global crypto landscape. The government's actions are likely to encourage other countries to adopt similar regulatory measures, fostering a more secure and transparent crypto industry worldwide.