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08/07/24
187
Central Bank of Nigeria Claims Binance Conducted Unauthorized Financial Transactions
Binance is facing allegations in Nigeria; the country’s apex bank alleges performance of banking services without being authorized for such. Local media reports revealed the testimony of an official of the Central Bank of Nigeria (CBN), Olubukola Akinwunmi, claiming that the deposit and withdrawal transactions of the cryptocurrency exchange are meant to be carried out by authorized financial institutions.
In Akinwunmi’s testimony before Judge Emeka Nwite of the Federal High Court of Nigeria in Abuja, the cryptocurrency exchange’s website misled Nigerians into using its platform for naira transactions through a cash link.
Binance promoted fee-free deposits and flat-fee withdrawals, which are CBN-regulated activities and reserved for financial institutions that have been licensed. Furthermore, according to Akinwunmi, the crypto exchange was involved in currency conversion from naira to USD, an activity requiring authorization from CBN and reserved for authorized dealers or a Bureau de Change.
He noted that Nigerians using Binance services usually use pseudonyms, which is against laws requiring the disclosure of true identities in financial transactions. Regarding the p2p service on the exchange’s platform, Akinwunmi said Binance was not authorized to provide it as it is a regulated activity.
The court adjourned the hearing until July 16 to ensure cross-examination of the defense. Judge Nwite asked the Nigerian Correctional Services to produce medical reports for Tigran Gambaryan, who has been in detention, warning that non-compliance will attract consequences.
A few weeks ago, Nigeria’s minister of information and national orientation, Mohammed Idris, addressed claims that he is being held in unsavory prison conditions in Nigeria, or that his health is deteriorating. He said the claims were false, as Gambaryan was having the utmost fair treatment, with the protection of his legal and human rights throughout the judicial proceedings.
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