A Nigerian central bank official has said that Binance is operating illegally in multiple ways in the West African country. The development comes amid the ongoing legal proceedings against the prominent cryptocurrency exchange in Nigeria.
Central Bank of Nigeria Official: Binance Violated Nigerian Currency Trading Policy
In April 2024, the Nigerian Economic and Financial Crimes Commission (EFCC) announced Prosecute Against Binance and its CEO Tigray Gambarian, accusing the two parties of tax evasion, currency speculation, and money laundering amounting to nearly $34.4 million.
Legal proceedings in the case resumed on Friday, after being adjourned since June, with prosecution counsel Dr. Olubukola Akinwunmi, head of the Payment Policy and Regulation Department at the Central Bank of Nigeria, presenting as a witness.
According to a local media report NairametricsAkinwunmi said Binance violated Nigerian laws by offering deposit and withdrawal services, an activity prohibited for banks and financial institutions registered under the strict supervision of the Central Bank of Nigeria.
Furthermore, Akinwunmi also commented on Binance’s peer-to-peer feature that allows users to exchange Nigerian Naira for USD-denominated assets. The Central Bank of Nigeria official stated that the cryptocurrency exchange requires a license from Apex Bank as an “authorized grantor” or “bureau de change” in order to offer such services in Nigeria. Akinwunmi also criticized the anonymous nature that protects the identity of users and thus violates some Nigerian laws.
It is worth noting that Binance has a mandatory Know Your Customer (KYC) process for all users of its P2P service and other trading features. However, in May, Binance, along with other exchanges, disabled its Naira P2P services following allegations of currency speculation that led to a rapid devaluation of the Naira.
After examining the witnesses’ testimony, Justice Emeka Nwate of the Federal High Court in Abuja adjourned the case to July 16 to allow time for the defendants’ lawyers to conduct cross-examination.
Gambarian health emerges as major issue
In other news, Gambarian’s health has become a key issue in court, with Judge Nuyt on Friday ordering the National Correctional Services to release a medical report on the detained Binance executive.
The Nigerian judge warned that the prison’s medical providers would be summoned to court if the directives were not followed. Gambarian has been detained at Kuje Prison in Abuja since April and is said to have suffered from pneumonia and malaria since then, prompting investigations into his health.
Featured image from Pulse Nigeria, chart from Tradingview
