The House of Representatives Committee on Financial Crimes in Nigeria has summoned Binance CEO Richard Teng to appear before the committee regarding suspicions of terrorism financing and money laundering. The committee’s Chair, Ginger Onwusibe, issued an ultimatum to Binance on March 1, stating that they must appear before the committee by March 4, 2024. The Central Bank of Nigeria (CBN) Governor expressed concerns about Binance on February 27, alleging suspicious flows of funds through the exchange in 2023.
Onwusibe warned that if Binance ignores the summons, the committee will take necessary actions using its constitutional authority. In a letter dated December 12, 2023, the committee called for Teng to appear before a hearing on December 18, 2023. Onwusibe expressed disappointment at Teng’s failure to attend despite multiple invitations and highlighted that it reflects a disregard for the existing laws governing business and financial operations in Nigeria.
The committee reiterated its commitment to combating financial crimes and emphasized that the constitution empowers them to protect Nigerians from such crimes, especially those involving foreign companies. The National Security Adviser’s office has reportedly detained two senior Binance officials in Abuja, Nigeria’s capital, as the government aims to crack down on cryptocurrency exchanges to control speculation surrounding the Nigerian naira.
Binance recently removed the naira from its peer-to-peer service amid the crypto exchange crackdown. The peer-to-peer feature, which allows users to trade without involving a third party, gained popularity in Nigeria after the government banned the thriving crypto industry during former President Muhammadu Buhari’s administration. However, in December 2023, the CBN lifted the ban on banks engaging in crypto transactions and issued guidelines for regulating virtual asset service providers. Nigeria became the second country to launch a central bank digital currency in 2022. Additionally, the Africa Stablecoin Consortium launched the naira-pegged cNGN stablecoin in a CBN regulator sandbox in February.
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