Nigeria Stays Crypto-Friendly Despite $80B Binance Lawsuit
Despite an ongoing $80 billion lawsuit against Binance, Nigeria remains open to cryptocurrency companies, signaling a commitment to regulated digital finance.
In February, Nigeria sued Binance over alleged economic losses and detained U.S. staff member Tigran Gambaryan in a money laundering case. After eight months, he was released, and charges were dropped. Binance, which ceased its Nigerian operations in March 2024, continues to deny all allegations.
Nigeria’s Information Minister, Mohammed Idris, emphasized that the government is strengthening laws rather than shutting down the crypto sector. “Other companies are operating in Nigeria, and you don’t see them facing charges,” Idris said, as quoted by Semafor.
However, authorities remain concerned about cryptocurrency’s potential role in money laundering, tax evasion, and terrorism financing. Idris stressed the need to tackle illicit financial flows globally.
Nigeria ranks as the world’s second-largest crypto adopter, recording $59 billion in transactions between July 2023 and June 2024. According to Chainalysis data, the country also accounts for 40% of stablecoin inflows in sub-Saharan Africa.
The Binance case has drawn parallels to Nigeria’s 2015 $5.2 billion fine against telecom giant MTN. Critics argue that imposing hefty penalties could discourage foreign investment. Foreign direct investment in Nigeria has dropped from $8.1 billion in 2009 to $1.6 billion in 2023.
Idris countered these concerns, stating that the government is working to improve the business climate by revising visa rules, tax policies, and expatriate quotas.
In a move signaling regulatory openness, Nigeria’s Securities and Exchange Commission (SEC) issued provisional licenses to local crypto startups Busha and Quidax.
Ngozi Okonye, a manager at Busha, noted that SEC licensing has improved banking access and boosted confidence in the industry. “The crypto ecosystem in Nigeria remains active,” Okonye said.
Despite the Binance lawsuit, Nigeria continues to support cryptocurrency businesses under a regulatory framework. With tighter laws and new licensing opportunities, the country aims to balance innovation with financial security.
