Nigeria is sending a mixed message on cryptocurrency: it’s pro-crypto, but also cracking down on Binance. Let’s break it down.
Binance’s Troubles in Nigeria
Nigeria has been battling with Binance, the world’s largest crypto exchange, since 2024. The government’s actions are framed as necessary to improve its regulatory framework and fight crime. Here’s a timeline of events:
- March 2024: Nigeria demanded $10 billion from Binance, claiming the exchange manipulated the Naira’s value, causing a 70% devaluation. A Binance executive, Tigran Gambrayan, was also detained for over eight months on money laundering allegations.
- February 2025: Nigeria sued Binance again, this time for $79.5 million, citing further economic losses due to alleged illegal operations. The government claimed Binance processed over $26.5 billion in unregistered Nigerian transactions.
The Government’s Justification
Nigeria’s Information Minister, Mohammed Idris, explained that the crackdown isn’t about stifling the crypto industry, but about establishing proper regulations. He stated that the large volume of transactions raised concerns about illicit activities like money laundering, tax evasion, and terrorism financing. The goal, he emphasized, is to ensure that all crypto operations within the country comply with the law. Idris highlighted the international importance of tackling illicit financial flows.
Binance’s Response and Nigeria’s Future Crypto Plans
Following the increased regulatory scrutiny, Binance shut down its Nigerian operations, halting Naira transactions. Despite this, the Nigerian government maintains its support for a thriving crypto industry, provided it operates within a regulated framework.
The Broader Crypto Market
While the crypto market showed some bullish signs in late 2024, it’s been a bit of a rollercoaster since then, with frequent corrections and uncertainty. At the time of writing, the total crypto market cap is around $2.72 trillion. Bitcoin still dominates (60.5%), followed by Ethereum (8.7%) and other altcoins.
