Witness in Nigerian trial accuses Binance of violating Central Bank regulations
According to a report from local media, Deputy Director of the Central Bank of Nigeria (CBN), Olubukola Akinwumi, accused Binance of engaging in transactions reserved for authorized banks and financial institutions on Friday.
Akinwumi made these allegations during his testimony in the ongoing lawsuit brought by the Economic and Financial Crimes Commission (EFCC) against Binance and its executive, Tigran Gambaryan. The accusation is related to an alleged money laundering scheme amounting to $35.4 million.
During his testimony, Akinwumi mentioned that Binance allowed Nigerian users to use fictitious names when conducting transactions on their platform, which is a violation of the CBN’s regulations requiring true identification in financial transactions.
Akinwumi also explained how Binance’s peer-to-peer (P2P) platform facilitated direct transactions involving the Nigerian fiat currency, Naira. However, Binance has since discontinued this feature for Nigerian users following government scrutiny earlier this year.
Furthermore, Akinwumi highlighted that Binance allowed Nigerians to deposit and withdraw Naira using a ‘cash link,’ which is a regulated activity under the CBN’s jurisdiction. It’s essential to note that Binance is not licensed by the CBN as a payment service provider.
The trial is set to resume on July 16, where Akinwumi will undergo cross-examination. The crackdown on crypto service providers in Nigeria began after the country’s National Security Adviser labeled crypto trading as a national security threat.
Last month, Nigeria’s Securities and Exchange Commission issued a 30-day window for crypto exchanges and digital asset traders to re-register their businesses under the new regulatory framework, with warnings of enforcement actions for non-compliance.
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