The Nigerian court delayed the proceedings regarding tax evasion with Binance and two of its management until April 30, which gives more time to the country’s tax office to a response to a legal challenge raised by the cryptocurrency exchange.
Nigeria Federal Inland Revenue Service (FIRS) previously secured a court order to serve legal documents at Binance via e -mail, citing a lack of physical presence in Nigeria.
Chukwuka Ikwuazom, Binance legal advisor, argued that the court order of permits to replace the service was granted improperly because the tax authority did not apply for a foreign entity approval by the court.
According to Ikwouzom, Binance is registered and inhabited in the Caiman’s Islands, and therefore should not be subject to local procedures without clear court consent. The defense submitted an application for annulment of the order issued by the court on February 11.
$ 81.5 billion
Legal action is part of the wider efforts of the Nigerian authorities to ensure regulatory control over cryptocurrency operations. The Nigeria government is looking for compensation in the amount of $ 79.5 billion for alleged economic interference caused by binance activities and an additional $ 2 billion in reverse taxes.
The authorities claim that the stock exchange played a role in exacerbating Naira volatility by facilitating cryptography -based currencies.
In 2024, two Binance managers were detained among the growing control of cryptocurrency platforms in Nigeria. The government claims that Binance’s actions are “significant economic presence”, which makes him responsible for corporate income tax under Nigerian law.
FIRS performs taxes for 2022 and 2023 tax years, along with a 10% annual penalty for unpaid amounts. Binance stated that he cooperates with the company in order to resolve all historical tax liabilities and remains involved in the Nigeria authorities in this matter.
Implications for regulating cryptocurrencies and international jurisdiction
The ongoing legal changes give birth to wider questions about the jurisdiction body in the digital era. The court’s decision on the initial permission of email services in a company without local physical presence may test the boundaries of the Nigeria legal system in dealing with cross-border digital entities.
The challenge posed by the Binance legal team reflects the complexity of international law, especially in matters related to digital assets platforms that operate in many jurisdictions.
The case can also affect the future regulatory frames on emerging markets, especially those that want to limit the potential of cryptocurrencies to circumvent time-honored Polish Financial Supervision.
As more and more countries are exploring the digital currencies of the central bank and digital tax compliance, the binance case can become a reference point for similar disputes around the world. The result of the hearing of 30 April may shape the regulatory map for cryptographic companies operating in regions with evolving financial regulations.
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