The Federal Government of Nigeria has reaffirmed its commitment to maintaining an open stance towards cryptocurrency companies, despite filing a lawsuit worth $80 billion against Binance, the world’s largest crypto exchange.
The legal action, initiated last month, accuses Binance of causing significant economic losses due to its operations in the country.
The lawsuit follows an earlier incident in which Nigerian authorities detained Tigran Gambaryan, a US-based staff member of Binance, as part of an investigation into alleged money laundering activities.
Gambaryan was held for eight months before being released, with the charges later dropped. Binance, which ceased all transactions in Nigeria in March 2024, has denied the allegations.
In an interview on Friday, March 21, Mohammed Idris, the Minister of Information and National Orientation, clarified that the lawsuit was not aimed at targeting cryptocurrency companies, but rather part of the government’s broader effort to strengthen regulatory oversight in the sector.
“We are ensuring that no one comes and operates without regulation,” Idris explained, emphasising that the lawsuit against Binance was a part of a wider regulatory effort, not an isolated attack on one company.
He pointed out that other cryptocurrency businesses in Nigeria continue to operate without facing legal challenges, indicating that the government’s approach is not to stifle the industry but to ensure compliance with national laws.
“There are other companies operating in the crypto sector in Nigeria, and you don’t see them facing charges,” Idris noted.
The Minister also expressed concerns over the potential misuse of cryptocurrency for illicit activities, such as terrorism financing, money laundering, and tax evasion.
He stressed that the issue of illicit financial flows is a global concern, and international cooperation is essential to ensure that cryptocurrency transactions comply with established financial regulations.
“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,” Idris said.
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