Nigeria has reiterated its acceptance of the cryptocurrency industry despite legal disputes with Binance. The government emphasizes that its actions aim to strengthen regulatory standards while addressing concerns regarding illegal activities linked to crypto transactions.
The Nigerian government has reiterated its openness to the cryptocurrency sector amidst ongoing legal disputes with the Binance exchange. Despite these challenges, officials assert that the clashes are aimed at enhancing the regulatory framework within the country.
In an interview with Semafor, Nigeria’s Minister of Information, Mohammed Idris, noted that the country continues to be crypto-friendly, even as it pursues lawsuits against Binance. The government initiated actions against Binance operations starting from 2024, citing numerous issues regarding compliance.
In March 2024, Nigerian officials demanded $10 billion in compensation from Binance, alleging that the exchange had manipulated foreign exchange rates, resulting in a significant devaluation of the Nigerian Naira. This claim arose alongside the detainment of Binance executive Tigran Gambrayan for over eight months on money laundering charges tied to the platform.
Recently, in February 2025, Nigeria filed a lawsuit against Binance for $79.5 million due to purported economic damages attributed to the exchange’s unregulated activities. Officials indicated that Binance processed transactions exceeding $26.5 billion in Nigeria despite lacking official registration.
The Minister expressed that these legal actions are motivated by concerns that cryptocurrency transactions may facilitate illicit activities such as money laundering and terrorist financing. The crackdown aims to uphold regulatory integrity while preventing crime, not to hinder operations.
Mohammed Idris emphasized, “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 highlighted the global necessity of addressing illicit financial flows in cryptocurrency markets.
In response to this regulatory environment, Binance has suspended its Nigerian operations, ceasing all transactions in Naira. Nevertheless, the Nigerian government affirms its commitment to supporting the crypto industry in a manner consistent with regulations.
Currently, the crypto market faces volatility with a total valuation of $2.72 trillion, reflecting a modest gain of 0.88% in the past week. Bitcoin holds a significant 60.5% market dominance, followed by Ethereum at 8.7% and other altcoins at 30.8%.
The Nigerian government’s approach to cryptocurrency emphasizes regulatory compliance while asserting its commitment to the sector. The ongoing legal battles with Binance reflect broader concerns about financial integrity and crime prevention. Nonetheless, Nigeria seeks to balance regulation with the growth of the crypto industry, as highlighted by the government’s messaging regarding ongoing efforts to fortify laws and maintain a secure financial environment.
Original Source: bitcoinist.com
