HomeBinanceWitness in Nigerian trial alleges Binance violated Central Bank regulations

Witness in Nigerian trial alleges Binance violated Central Bank regulations

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Central Bank of Nigeria Deputy Director Accuses Binance of Unauthorized Transactions

The Central Bank of Nigeria (CBN) has accused Binance, a popular cryptocurrency exchange platform, of conducting transactions reserved for authorized banks and financial institutions. Olubukola Akinwumi, the deputy director of the CBN, made these accusations during his testimony in a lawsuit brought by the Economic and Financial Crimes Commission (EFCC) against Binance and its executive, Tigran Gambaryan.

Akinwumi testified that Binance allows Nigerian users to use pseudonyms to conduct transactions on its platform, which goes against the CBN’s rules that require parties to disclose their true identities in financial transactions. He also mentioned that Binance’s peer-to-peer (P2P) platform, which facilitates direct transactions, involves the transfer of the Nigerian fiat currency, Naira.

The witness highlighted that Binance enables Nigerians to deposit and withdraw Naira from the platform using a ‘cash link,’ despite not being licensed by the CBN as a payment service provider. Akinwumi’s testimony shed light on the alleged money laundering activities amounting to $35.4 million that Binance is accused of.

The trial is set to resume on July 16, where Akinwumi will be cross-examined. This legal battle comes amidst Nigeria’s crackdown on crypto service providers, following the country’s National Security Adviser’s classification of crypto trading as a national security threat. The CBN had lifted a two-year ban on crypto transactions just last December, but recent actions by regulatory bodies indicate a stricter stance towards the cryptocurrency industry in Nigeria.

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