when

Fine

Security

This is a major development in the Nigerian cryptocurrency market, CBN has accused Binance, the global cryptocurrency exchange of serious allegations. On Friday, July 5, a CBN official appeared in court and stated that Binance has been providing banking services in the country without legal permits and approval. This revelation came out when the applicant was testifying before the Federal High Court of Nigeria sitting in Abuja, before His Lordship, Justice Emeka Nwite. 
<h3 style="text-align: justify;" id="span-span-data-font-font-size-style-font-size-16px-what-s-the-news-span-span">What's the News</h3>
Dr. Olubukola Akinwunmi, Head of Payment Policy and Regulation at the CBN, presented compelling testimony, accusing <a href="https://www.coingabbar.com/en/crypto-currency-news/binance-legal-struggles-and-market-exit-from-nigeria" title="Binance" class="f-link" rel="noopener noreferrer nofollow">Binance</a> of operating without proper authorization. According to Dr. Akinwunmi, Binance engaged in deposit and withdrawal transactions that should legally be performed only by licensed banks and financial institutions.&nbsp;
This testimony was part of a broader legal challenge where Binance and its executives, Tigran Gambaryan, and the absconding Nadeem Anjarwalla faced allegations of obscuring the origins of $35,400,000 derived from illicit activities in Nigeria.
The Nigerian government contends that Binance’s website misled users into conducting naira transactions through a platform that promoted fee-free deposits and flat-fee withdrawals. Dr. Akinwunmi emphasized that these activities fall under the regulatory purview of the CBN and are reserved for licensed entities.&nbsp;
He also noted that Binance facilitated currency conversions from naira to dollars, an action requiring explicit CBN authorization typically granted to authorized dealers or Bureaux de Change.
Adding to this, Dr. Akinwunmi outlined the procedure of P2P transactions on Binance, which makes it quite challenging for users to go through the process independently. In these transactions, the buyer pays the seller in naira through transferring to the seller’s bank account and the confirmation of the transaction through the platform to Binance to release the corresponding cryptocurrency or fiat money.&nbsp; According to Dr. Akinwunmi, this practice constitutes a regulated financial service that Binance is not authorized to offer.
<h4 style="text-align: justify;">Final Thoughts</h4>
The court adjourned the session until July 16, allowing the defense time for cross-examination. Justice Nwite also ordered the Nigerian Correctional Services to provide medical reports for <a href="https://www.coingabbar.com/en/crypto-currency-news/binance-untying-with-nigeria" title="Tigran Gambaryan" class="f-link" rel="noopener noreferrer nofollow">Tigran Gambaryan</a>, warning of severe consequences for noncompliance.
This legal action is part of a broader crackdown on cryptocurrency activities in Nigeria. The National Security Adviser has classified cryptocurrency trading as a national security issue, leading the CBN to direct fintech startups like Opay, Moniepoint, Paga, and Palmpay to block and report accounts engaged in cryptocurrency transactions. In response to the increasing scrutiny, Binance disabled its P2P feature for Nigerian users in February.&nbsp;
Additionally, during a virtual meeting with the Blockchain Industry Coordinating Committee of Nigeria (BICCoN), the SEC called for measures to delist the naira from P2P platforms to prevent market manipulation and protect the integrity of Nigeria’s capital market.
As this case unfolds, it reveals the issues and legal obstacles that exchanges of cryptocurrencies encounter while operating in different countries. The decision of this legal battle could determine the fate of cryptocurrency operations in Nigeria and in the entire world.
Also Read: <a href="https://www.coingabbar.com/en/crypto-currency-news/binances-dollar44m-fine-appeal-battle-against-fintrac" title="Binance's Legal Woes, Appeals $4.4M Fine By FINTRAC" class="f-link" rel="noopener noreferrer nofollow">Binance's Legal Woes, Appeals $4.4M Fine By FINTRAC</a>

Binance VS Nigeria Central Bank: An Illicit Transaction Case

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