Nigerian Court Sets October Date for Binance Tax Evasion Trial
The Nigerian court system has scheduled the verdict for the tax evasion trial against cryptocurrency exchange Binance for October 11th, 2024. This follows a series of legal developments surrounding Binance’s operations in Nigeria.
On July 12th, Binance’s lawyer, Ayodele Omotilewa, appeared before Judge Emeka Nwite to represent the company. Omotilewa entered a not-guilty plea on behalf of Binance in response to the four tax evasion charges brought against it. These charges include failing to register with the Nigerian regulatory body, the Federal Inland Revenue Service (FIRS).
Omotilewa argued for a dismissal of the charges, citing a lack of evidence similar to the previous dismissal of tax evasion charges against two Binance executives, Tigran Gambaryan and Nadeem Anjarwalla.
In June, the Federal High Court in Abuja cleared Gambaryan and Anjarwalla of tax evasion. However, both executives still face separate money laundering charges, which they deny. These charges were levied after FIRS amended their initial complaint, dropping the tax evasion allegations against the executives. This amendment coincided with Binance’s appointment of Omotilewa to manage its Nigerian operations.
Judge Nwite’s decision to adjourn the case until October allows both the prosecution and defense additional time to prepare and present their respective cases. This delay facilitates further deliberation and review of the evidence.
In February, Nigerian authorities detained Anjarwalla and Gambaryan during a visit to the country. The executives were held for several weeks on suspicion of tax evasion and money laundering.
While Binance has refrained from commenting on the latest developments, the company previously advocated for the dismissal of all charges. Conversely, Nigerian authorities have blamed cryptocurrency platforms like Binance for contributing to their national currency’s struggles. They allege that cryptocurrency has become the preferred method for trading the Nigerian Naira due to a severe dollar shortage and the Naira’s record low value.
This regulatory crackdown aligns with the Nigerian National Security Adviser’s stance that cryptocurrency trading poses a national security threat. As part of this effort, the Central Bank of Nigeria (CBN) has instructed fintech companies to identify and report accounts involved in cryptocurrency transactions. The CBN has also directed such companies to take preventative measures to restrict further cryptocurrency activity.
Further complicating the situation, the CBN’s payment policy and regulation chief argued in court on July 6th that only banks and authorized financial institutions should be allowed to process deposit and withdrawal transactions for Binance.
With the verdict scheduled for October, the ongoing Binance case has significant implications for the cryptocurrency industry in Nigeria. A clear and decisive outcome can provide much-needed regulatory clarity for both cryptocurrency businesses and Nigerian users.
