The federal government remains supportive of cryptocurrency firms operating within the nation even as legal action against Binance, the prominent crypto exchange, continues. This stance holds firm despite the recent high-profile arrest of Tigran Gambaryan, a key Binance executive.
Mohammad Idriss, the information minister, stated on Friday that the lawsuit is an integral part of the government’s initiative to tighten regulations rather than aiming at particular businesses.
"This is an initiative aimed at bolstering our regulations, rather than hindering anyone. We want to ensure that nobody can operate without proper oversight," Idris stated to the outlet.
In February, Nigeria initiated an $81.5 billion legal action against Binance, alleging that the platform caused instability in Nigeria’s national currency, the naira. Additionally, they claimed that Binance owes $2 billion in unpaid taxes. This comes amid ongoing efforts by the Nigerian government to develop effective cryptocurrency regulations.
"We are making sure that nobody can operate here without proper regulations," Idris stated, adding that other cryptocurrency firms in Nigeria still function without encountering legal issues.
"There are other firms active in the cryptocurrency space in Nigeria, yet they aren't being subjected to such charges," he noted.
Idris also raised worries about the possible abuse of cryptocurrencies for illegal actions such as funding terrorism, washing money, and evading taxes.
He highlighted that the problem of unauthorized capital movements is a worldwide issue, emphasizing the critical role of global collaboration to make sure that cryptocurrency activities comply with financial rules.
"It's not only about Nigeria; internationally, it's crucial to tackle illegal financial activities as well. Huge volumes of transactions that bypass the normal functioning of financial institutions cannot be overlooked," Idris stated.
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