Binance, the popular cryptocurrency exchange, is currently facing increased scrutiny in Nigeria, according to the governor of the Central Bank of Nigeria (CBN). Olayemi Cardoso, the head of the CBN, expressed concerns about “suspicious flows” of funds through Binance Nigeria in 2023. The country’s Securities and Exchange Commission, along with other government agencies, is already keeping a close eye on the exchange.
Cardoso stated that crypto exchanges in Nigeria are under suspicion, as there are indications of illicit flows passing through these entities. He emphasized that various agencies, such as the Economic and Financial Crimes Commission, the police, and the office of the National Security Adviser, are collaborating to address this issue.
Furthermore, there have been reports that the office of the National Security Adviser has detained and confiscated the passports of two Binance executives in the capital city, Abuja. These executives are citizens of the United States and the United Kingdom.
The Nigerian government took action against Binance and other exchanges by blocking internet access to their platforms on February 21. This move came after a presidential adviser, Bayo Onanuga, accused crypto exchanges of manipulating the country’s currency. In response, Binance had already imposed restrictions on Tether (USDT) trading in Nigeria on February 20 to appease regulators.
According to reports, on February 27, Binance, along with other exchanges such as Forextime, OctaFX, Crypto, FXTM, Coinbase, and Kraken, were blocked. Consequently, the Nigerian naira reached an all-time low against the U.S. dollar on the same day.
It is worth noting that the CBN lifted a two-year ban on banks engaging in crypto transactions in December. At the same time, guidelines were issued for regulating virtual asset service providers. Nigeria became the second country to launch a central bank digital currency in 2022, with the introduction of the naira-pegged cNGN stablecoin by the Africa Stablecoin Consortium in a CBN regulator sandbox.
As of the time of publication, Binance has not responded to a request for comment from Cointelegraph regarding the situation in Nigeria.
Magazine: Bitcoin in Senegal: Why is this African country using BTC?