The Central Bank of Nigeria (CBN) has accused Binance, the largest cryptocurrency exchange globally, of conducting unauthorized banking services, as reported by media sources.
During a trial before Justice Emeka Nwite of the Federal High Court in Abuja, Olubukola Akinwunmi, CBN’s Head of Payments Policy and Regulation, provided testimony. Akinwunmi highlighted that according to regulations, deposit and withdrawal transactions involving cryptocurrencies should only be handled by authorized banks and financial institutions in Nigeria.
Notably, the Nigerian government has also levied accusations of money laundering against Binance and its executives, Tigran Gambaryan and Nadeem Anjarwalla.
Akinwunmi affirmed that Binance did not possess the required license from the CBN to operate in Nigeria. “As part of our operational duties, we routinely monitor developments within the Securities and Exchange Commission (SEC), oversee payment service providers, and supervise the usage of payment systems,” Akinwunmi stated. “Our observations revealed that Binance offers a trading platform for virtual assets, facilitating transactions where users transfer funds using the payment system.”
He further pointed out that these transactions often occur under pseudonyms that conceal the traders’ identities, which contravenes CBN regulations.
In a separate development, Binance executives Tigran Gambaryan and Nadeem Anjarwalla were apprehended upon arrival in Abuja on February 26. However, Anjarwalla managed to evade custody on March 22.
In March, Binance made a strategic decision to exit the Nigerian market, halting all services involving the Nigerian Naira (NGN), in response to escalating regulatory pressures. This move came amidst concerns expressed by Nigerian authorities, including the CBN governor, regarding potential illicit activities and suspicious financial flows linked to cryptocurrency platforms, notably Binance.
The regulatory scrutiny intensified with the seizure of the passports of two Binance executives in Abuja and the subsequent summoning of Binance CEO Richard Teng by the Nigerian House of Representatives Financial Crimes Committee.
Disclaimer: The opinions and views expressed in this article are for informational purposes only and should not be considered financial or investment advice. Investing or trading in cryptocurrencies carries inherent risks of financial loss.