Nigeria is maintaining a positive stance towards cryptocurrencies amidst legal issues with Binance, which it sees as necessary for regulatory enhancement. The government has pursued legal actions against Binance to ensure compliance and prevent illicit activities while expressing a commitment to a regulated crypto industry. The overall crypto market continues to fluctuate, showing signs of potential recovery despite recent instability.
The Nigerian government has reiterated its acceptance of the cryptocurrency industry amidst legal challenges with Binance, the world’s largest exchange. These legal disputes are viewed as an opportunity to enhance Nigeria’s regulatory framework for cryptocurrencies.
In an interview with Semafor, Nigeria’s Minister of Information, Mohammed Idris, stated that the nation remains welcoming towards cryptocurrencies despite ongoing lawsuits against Binance. The government has taken action against Binance since 2024, citing multiple concerns related to its operations within Nigeria.
In March 2024, Nigeria’s government demanded $10 billion in compensation from Binance, alleging manipulation of the foreign exchange rate that led to a 70% devaluation of the Naira. Furthermore, a Binance executive was detained for over eight months on money laundering allegations linked to the platform.
As of February 2025, the Nigerian government has filed another lawsuit against Binance for $79.5 million, claiming economic damages from the exchange’s unregistered operations. Nigerian officials estimate that Binance has facilitated over $26.5 billion in local transactions.
Minister Idris emphasized that the crackdown on Binance aims to prevent financial crimes like money laundering, tax evasion, and terrorism financing. He clarified that the objective is regulatory integrity, stating, “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.”
Idris added that combating illicit financial flows is a global priority, stating it’s vital that substantial transactions adhere to the operations of legitimate financial dealers. Although Binance has ceased operations in Nigeria, the government remains committed to fostering a thriving crypto industry that aligns with regulatory standards.
Meanwhile, the cryptocurrency market has struggled with volatility since late 2024, despite indicators of a potential bull run. Currently, the total market valuation stands at $2.72 trillion, with Bitcoin accounting for 60.5% market dominance, followed by Ethereum at 8.7% and other altcoins at 30.8%.
In summary, Nigeria is actively pursuing regulatory measures in the cryptocurrency sector, particularly against Binance, to safeguard its financial ecosystem. Despite ongoing legal issues, the government has articulated its intent to support the crypto industry, provided it complies with regulations. The current market dynamics reflect both challenges and potential for growth within the broader crypto landscape.
Original Source: bitcoinist.com
