he legal issues between Binance and Nigerian regulators first arose when the country's Financial Intelligence Unit accused the exchange of facilitating money laundering worth over $35 million through the platform. This led to the arrest of two senior Binance executives who had traveled to Nigeria in late February. Further allegations of facilitating massive naira devaluation also surfaced.
In response, Binance suspended naira services for Nigerian users and pledged cooperation with investigations. However, in late March, the Nigerian tax authority - FIRS charged Binance and two executives with four counts of tax evasion, relating to non-payment of various taxes and failure to register for tax purposes before operating in the country.
First Court Hearing and Adjournment
The tax evasion case first came up for hearing in early April. However, the prosecution argued they had been unable to properly serve notices of the charges to one of the Binance executives abroad. Given this, the judge postponed the trial to allow time for serving court papers.
This initial delay highlighted the legal complexities around trying an international company operating remotely. However, it did not resolve the substantive tax issues between Binance and FIRS.
Latest Postponement Due to Service of Charges
When the case was next listed for April 19th, only one executive was present in court as the other had left the country. The prosecution maintained their position that notices had still not been served to Binance as the primary defendant.
As a result, the executive's lawyer argued he could not enter a plea without the exchange also being officially notified. After considering the standstill, the presiding judge postponed the hearing again, this time to May 17th.
Unresolved Regulatory Issues Remain
The repeated delays point to ongoing procedural difficulties in holding Binance accountable via Nigerian courts. With one executive having fled and notices still not served domestically or internationally, progress has clearly stalled.
This allows the broader regulatory confrontation between Binance and Nigerian authorities to persist unresolved. Until adequate representation and formal charges are established, the legal route seems unlikely to achieve closure soon.
Future Outlook Uncertain
With the tax evasion trial now pushed back by over a month, further postponements also remain possible given the service of charge hurdles. Binance also still faces separate money laundering allegations, adding another unsettled issue.
Unless the company engages directly with Nigerian regulators, the stand-off looks poised to drag on indefinitely. Meanwhile, Nigerian users lack clarity on local crypto market participation. An amicable resolution would benefit all parties, but appears distant for now.
