The Nigerian Government Accuses Binance of Tax Evasion
The Nigerian government has hit Binance, the world’s largest cryptocurrency exchange, with four charges of tax evasion. The Federal Inland Revenue Service (FIRS) filed the charges at a Federal High Court in Abuja. This move marks a significant escalation in the ongoing conflict between the government and the exchange.
- The charges were filed on March 22, the same day when Nadeem Anjarwalla, a Binance executive, managed to escape from the custody of the Economic and Financial Crimes Commission (EFCC).
- The FIRS specifically mentioned Anjarwalla and Tigran Gambaryan as defendants in the lawsuit against Binance.
Allegations Against Binance
The lawsuit alleges that Binance failed to deduct value-added taxes (VATs) from crypto transactions on its platform. Additionally, the exchange is accused of aiding users in evading their taxes. Some other accusations include:
- Not registering with the FIRS to pay relevant taxes
- Not issuing VAT tax invoices to users
These charges are part of a broader effort by the Nigerian government to clamp down on potential financial crimes within the crypto space, such as money laundering and terrorist financing activities.
Escape of Binance Executive
Nadeem Anjarwalla’s escape from EFCC custody has raised eyebrows and questions about the effectiveness of security measures in place. Details of the escape suggest that:
- Anjarwalla somehow managed to bypass security checks and leave the country
- His Kenyan citizenship played a crucial role in facilitating his departure
Authorities are now focused on determining his whereabouts, and the court has extended the detention of Binance officials for further investigations.
International Scrutiny on Binance
Binance’s troubles extend beyond Nigeria, as the Philippines Securities and Exchange Commission is moving to block the exchange’s website. The commission highlights concerns about:
- The security risks Binance poses to local investors
- Potential threats to the financial stability and regulatory integrity of the Philippines
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