Nigerian Court Sets Verdict Date for Binance Tax Evasion Trial

The Nigerian court has scheduled the verdict for the tax evasion trial against Binance for October 11. The popular crypto exchange faces four charges of tax evasion, including the critical accusation of failing to register with Nigeria’s Federal Inland Revenue Service (FIRS).

Courtroom Developments

On July 12, Binance legal representative, Ayodele Omotilewa, appeared in court. He entered a not-guilty plea for the exchange of all four charges before Judge Emeka Nwite. Omotilewa argued for the dismissal of the charges, stating that the case lacked substantial evidence.

The legal representative compared the current charges to a previous case against Binance executives Tigran Gambaryan and Nadeem Anjarwalla, which was dismissed due to insufficient grounds.

The Binance Case Background

The troubles for Binance in Nigeria began in February when Anjarwalla and Gambaryan were arrested during a visit to Nigeria. They faced tax evasion and money laundering allegations. However, both executives strongly denied the charges.

The Federal High Court in Abuja eventually cleared them of tax evasion in June, following the FIRS’s submission of amended charges. Notably, both of them still face separate money laundering charges.

Omotilewa’s defense is bolstered by the recent dismissal of charges against Gambaryan, a U.S. citizen, and Anjarwalla, a British Kenyan who returned to Kenya after his release. The amended charges by FIRS, which dropped the tax evasion allegations, came after Binance appointed Omotilewa to manage its local operations.

Judge Nwite’s decision to adjourn the case until October provides both the defense and prosecution with additional time to review the evidence and prepare their arguments.

Nigeria’s Tough Stance

Nigeria has been grappling with severe dollar shortages and a plunging value of its fiat currency, the naira. The government has partially blamed cryptocurrency platforms like Binance for exacerbating these issues. It claims that they have become the preferred method for trading the naira amidst the economic crisis.

Meanwhile, Nigeria still lacks a clear set of regulations for the digital assets. The crackdown on the crypto sector aligns with the stance of the National Security Adviser, who has labeled cryptocurrency trading as a potential national security threat.

In this effort, the Central Bank of Nigeria (CBN) has instructed fintech companies to identify and report accounts involved in cryptocurrency transactions and take appropriate action to stop such activities.

Binance is facing regulatory scrutiny in several countries around the world. In June, India’s Financial Intelligence Unit (FIU-IND) fined the exchange of $2.25 million for failing to comply to the country’s Anti-Money Laundering (AML) regulations.