A Nigerian court has set the verdict for the tax evasion trial against Binance for October 11, with the exchange facing four counts of tax evasion, including failure to register with Nigeria’s Federal Inland Revenue Service. Binance’s lawyer has pleaded not guilty to all charges and urged the judge to dismiss them, stating that the case lacks substance. The court has adjourned the case until October to allow for further deliberation and preparation from both the defense and prosecution teams.
In June, charges of tax evasion against two Binance executives were dropped by the Federal High Court in Abuja following the submission of amended charges by the FIRS. The executives still face separate money laundering allegations, which they deny. This change in the charges came after Binance appointed a new lawyer to handle its local operations. The lawyer representing Binance in court has emphasized that the case lacks substance, similar to the previous dismissal of charges against the executives.
The Nigerian government has attributed some of its economic challenges to the activities of Binance, pointing out the platform’s role in trading the Nigerian naira during severe dollar shortages, which has contributed to the currency’s record low. Following issues faced by Binance’s Nigerian users in trading USDT for naira on its P2P platform, Nigerian authorities blocked access to major crypto exchanges, including Binance, due to concerns over currency manipulation and money laundering. Binance subsequently ceased all Nigerian naira services, halting deposits and withdrawals and delisting naira trading pairs.
The crackdown on cryptocurrency activities in Nigeria aligns with the National Security Adviser’s belief that cryptocurrency trading poses a national security risk. As part of this effort, the CBN instructed fintech companies to identify and report accounts engaged in cryptocurrency transactions and take appropriate actions to prevent further activity. During a court session on July 6, the CBN’s payment policy and regulation chief argued that only banks and authorized financial institutions should process deposit and withdrawal transactions for Binance as part of the ongoing case. Binance has not provided immediate comments on the ongoing legal battles but has previously stated that the charges should be dismissed.
Overall, the trial against Binance for tax evasion in Nigeria continues to unfold, with the court adjourning the case until October for further review and deliberation. The decision to drop charges against two Binance executives in June has set a precedent for the ongoing legal battle, as the platform faces allegations related to tax evasion and money laundering. The Nigerian government’s crackdown on cryptocurrency activities and its attribution of economic issues to Binance highlight the challenges faced by the exchange in the local market. As the case progresses, it remains to be seen how Binance will navigate the legal landscape in Nigeria and address the allegations brought against it.
