Binance Operations in Nigeria Criticized by Central Bank Official 🏦🇳🇬

Binance Naira Trading Policy Violation Unveiled by CBN

An official at the Central Bank of Nigeria (CBN) has stated that Binance operated illegally in multiple ways in the West African nation. This development comes amidst the ongoing legal trial of the prominent crypto exchange in Nigeria.

Nigeria Economic Financial Crime Commission Lawsuit

In April 2024, the Nigeria Economic Financial Crime Commission (EFCC) filed a lawsuit against Binance and its executive Tigray Gambaryan. The lawsuit accused both parties of tax evasion, currency speculation, and money laundering totaling $34.4 million.

Legal Proceedings Resumed

The legal proceedings of the case resumed recently with the prosecution counsel introducing Dr. Olubukola Akinwunmi, Head of Payment Policy and Regulation Division at the CBN, as a witness.

Violation of Nigerian Laws by Binance

Local media outlet Nairametrics reported that Akinwunmi highlighted how Binance violated Nigerian laws by providing deposit and withdrawal services. These activities are restricted for banks and registered financial institutions under the strict supervision of the CBN.

Peer-to-Peer Feature Criticism

Akinwunmi also commented on Binance’s peer-to-peer feature that allowed users to swap the Nigerian Naira for assets denominated in the US dollar. The CBN employee emphasized that the exchange needed a license from the Apex bank to offer such services legally in Nigeria.

Binance Operations Suspension

In response to allegations of currency speculation impacting the Naira’s devaluation, Binance, alongside other exchanges, suspended their Naira P2P services, which raised regulatory concerns.

Court Case Adjourned

After the witness testimony, Justice Emeka Nwite of the Federal High Court, Abuja, directed the case to be adjourned to July 16 to allow for the defendants’ lawyers to cross-examine.

Gambaryan’s Health Concerns

The health status of Tigray Gambaryan has become a significant issue in court, prompting Justice Nwite to demand a medical report from the National Correctional Services. Gambaryan, detained in Kuje Prison, Abuja since April, has reportedly suffered from pneumonia and malaria, raising concerns about his well-being.