A Nigerian court has postponed Binance’s tax evasion to April 30, delaying legal proceedings that could shape the future of cryptocurrency regulation in Africa’s most populous country.
The adjournment comes after Binance claimed that Nigeria’s Federal Inland Revenue Service (FIRS) did not get the court’s permission to send court papers outside the country, and since Binance has no physical office in Nigeria, they say the order is invalid.
The court postponed the hearing as Binance disputes the method of service
Abuja’s Federal High Court agreed on Monday to adjourn the trial to April 30 to give the FIRS more time to respond to the objection Binance presented concerning how the lawsuit was served.
Binance lawyer Chukwuka Ikwuazom informed the court that the FIRS should have followed the proper legal procedure by requesting the court’s approval before serving the documents outside Nigeria. And since Binance is registered and operates from the Cayman Islands, the lawyer claimed it was wrong for the court to allow service by email.
“On the whole the order for the substituted service as granted by the court on February 11, 2025 on Binance who is…registered under the laws of Cayman Islands and resident in Cayman Islands is improper and should be set aside.”
~ Chukwuka Ikwuazom
The FIRS accused Binance of failing to pay $2 billion back in taxes and operating activities that resulted in approximately $79.5 billion in economic damage, making this case one of the biggest tax and regulatory challenges any Nigerian cryptocurrency company has faced.
The FIRS might take more legal action against other international cryptocurrency platforms operating in Nigeria without proper registration of tax compliance if the court sides with them.
This case is also a test of how international digital platforms can operate freely and without many restrictions.
Nigeria challenges Binance’s global operations through domestic regulation
Many Nigerians rely on digital platforms to exchange currency outside of traditional financial institutions, which authorities say has contributed to the naira’s instability, and blame Binance, among other crypto platforms.
Nigerian regulators detained Tigran Gambaryan and Nadeem Anjarwalla (Binance executives) in February 2024 because they accused the platform of manipulating the currency and evaded tax.
Binance is not officially registered in Nigeria, but the FIRS claims it makes a lot of profits from the citizens and should pay corporate income taxes for 2022 and 2023. They also added that Binance should pay a 10% annual penalty on unpaid taxes for the two years.
Binance stated that it is working closely with Nigerian authorities to resolve any tax concerns but has not yet given any updates on the latest court developments.
The case has sparked several debates, including whether foreign tech firms who earn revenue in Nigeria should pay taxes even without establishing local offices. Another key debate revolves around how regulators should engage with digital platforms that offer cross-border services without registering locally.
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