Central Bank of Nigeria: Illegal financial transactions are taking place on the Binance exchange

A scandal surrounding the Binance platform erupted in the local media in Nigeria. Olubukola Akinwunmi, a spokesman for the Central Bank of Nigeria (CBN), appeared before the Federal High Court in Abuja, saying the Binance website was misleading citizens by asking them to conduct transactions in Nigerian naira. The platform promised free deposits and withdrawals with fixed fees, which Akinwunmi said is a function of licensed banks and financial institutions under the supervision of the CBN.

Akinwunmi also alleged that Binance was converting naira into US dollars without the necessary CBN approval. Such activities require a license to operate as an official dealer or currency exchanger. Moreover, he said, Binance traders often use pseudonyms, which violates Nigerian laws on the disclosure of identity in financial transactions.

Speaking as a witness, Akinwunmi described in detail the process of P2P transactions on Binance. He explained that the buyer transfers naira to the seller's bank account and confirms the transaction on the platform, after which Binance provides the cryptocurrency or fiat currency. The official insisted that such services must be regulated and Binance has no right to provide them without a license.

Judge Emeka Nwite, hearing the case, adjourned until July 16 to allow cross-examination of the defense. Nwite also ordered the Nigerian Correctional Service to provide a medical report regarding the head of Binance's financial crime department, Tigran Gambarian. Gambarian is in a Nigerian prison on charges of conspiracy to launder money through cryptocurrencies and tax evasion. US lawmakers are calling for his release due to poor health.

In June, Nigeria's Minister of Information, Mohammed Idris, made a statement that Binance's activities were negatively impacting the country's economy. According to him, the platform contributes to the depreciation of the Nigerian naira and currency speculation, exacerbating the economic crisis in the country. Idris stressed that measures must be taken to protect the national currency and stabilize the financial system.

The situation around Binance in Nigeria continues to escalate. Allegations of illicit financial transactions and violations of identity disclosure laws threaten the platform's operations in the country. The Central Bank and government authorities intend to strengthen control and regulation of cryptocurrency transactions in order to protect the national economy and ensure the stability of the financial system.