Bank

Security

The Central Bank of Nigeria (CBN) has criticized Binance, the globally recognized cryptocurrency exchange, for conducting banking services without proper authorization. This accusation, presented by Dr. Olubukola Akinwunmi, Head of Payment Policy and Regulation at the CBN, before the Federal High Court in Abuja, marks a significant escalation in the Nigerian government’s scrutiny of cryptocurrency operations.
Dr. Olubukola Akinwunmi testified that Binance’s deposit and withdrawal transactions, which should be reserved for banks and authorized financial institutions, were being offered without necessary permissions.&nbsp;
The testimony, supported by the Economic and Financial Crimes Commission (EFCC), outlined that Binance’s platform misled Nigerians into using its services for naira transactions via a cash link, promoting fee-free deposits and flat-fee withdrawals—services regulated by the CBN.
Allegations On Binance
The Nigerian government has also accused Binance and its executives, Tigran Gambaryan and Nadeem Anjarwalla, of concealing the source of $35.4 million in illicit cash. The testimony pointed out that Binance allowed illicit currency transfer from naira to dollars, a service that required CBN approval.
Furthermore, it was discovered that many Binance traders employ pseudonyms, violating financial transaction rules that require the disclosure of genuine identities.
Dr. Akinwunmi detailed Binance’s peer-to-peer (P2P) transaction process, where naira transfers between parties were facilitated on the platform, a regulated activity that Binance was not authorized to perform. This accusation further complicates Binance’s operations within Nigeria, underscoring the government’s stance against unauthorized financial activities.
What’s Next?
Following Dr. Akinwunmi’s testimony, the court adjourned until July 16 for the defense’s cross-examination. The crackdown on Binance aligns with the National Security Adviser’s classification of cryptocurrency trading as a national security issue.
Previously, Binance had disabled its P2P feature for Nigerian users due to government scrutiny. The ongoing legal battle reflects Nigeria’s stringent regulatory environment for cryptocurrency activities and its efforts to maintain financial stability and integrity.
<blockquote class="wp-block-quote is-layout-flow wp-block-quote-is-layout-flow">
 Also Read: <a href="https://www.cryptotimes.io/2024/06/07/binance-vs-nigeria-a-trial-in-a-pickle-that-could-turn-relations-sour/" target="_blank" rel="noopener noreferrer nofollow">Binance vs Nigeria: A trial in a pickle that could turn relations sour</a>
</blockquote>

Central Bank of Nigeria Accuses Binance of Running Shadow Bank

The Crypto Times

Other articles published on Jul 6, 2024

Crypto Whales See Opportunity in Crisis: What They're Buying Now

Russia Mulls Over Stablecoin Legislation for Cross-Border Payments

Unlocking Liquidity: Advanced AMM Models on Modern Launchpads

MoonBag Listing on LBank Confirmed: Is a Coinbase Debut on the Horizon?

Bit Digital’s Strategic Shift: From Bitcoin to Ethereum Holdings

MoonBag Presale Surpasses $3.2M, Promising High Returns To Jasmy and IMX Investors

Join our free newsletter for daily crypto updates!