A Central Bank of Nigeria (CBN) official has criticized Binance for operating unlawfully in Nigeria. This critique has emerged during the ongoing legal proceedings against the popular cryptocurrency exchange in the country.
CBN Official Accuses Binance of Violating Naira Trading Rules
In April 2024, the Nigeria Economic Financial Crime Commission (EFCC) initiated legal action against Binance and its executive Tigray Gambaryan over allegations of tax evasion, currency speculation, and money laundering amounting to $34.4 million.
Following a postponement from June, the trial resumed recently with Dr. Olubukola Akinwunmi, the Head of Payment Policy and Regulation Division at the CBN, testifying as a witness.
Akinwunmi emphasized that Binance breached Nigerian regulations by offering deposit and withdrawal services, activities restricted to banks and registered financial institutions supervised by the CBN. The official also criticized Binance’s peer-to-peer feature allowing users to exchange Nigerian Naira for assets pegged to the US dollar without the necessary licensing as required by Nigerian laws.
Although Binance enforces a mandatory know-your-customer verification process for users, it suspended its Naira peer-to-peer services in response to allegations of currency speculation causing Naira devaluation.
Justice Emeka Nwite from the Federal High Court, Abuja has adjourned the case to July 16 to permit the defendants’ legal counsel to cross-examine the witness.
Concerns Arise over Gambaryan’s Health
Gambaryan’s health has emerged as a significant concern during the court proceedings, leading Justice Nwite to demand a medical report from the National Correctional Services concerning the detained Binance executive.
If the medical report is not provided, the court may summon prison medical providers. Gambaryan, detained in Kuje Prison since April, has reportedly suffered from pneumonia and malaria, prompting investigations into his well-being.
