The Nigerian House of Representatives Committee on Financial Crimes has summoned Binance CEO Richard Teng to appear before the committee regarding suspicions of terrorism financing and money laundering. The committee’s Chair, Ginger Onwusibe, issued an ultimatum to Binance management, demanding their appearance on or before March 4, 2024.
The Central Bank of Nigeria (CBN) governor expressed concerns about Binance, citing “suspicious flows” of funds through the exchange in 2023. Onwusibe warned that failure to comply with the summons would lead to the committee taking necessary actions.
In a letter dated December 12, 2023, the committee had called for Teng’s appearance at a hearing on December 18, 2023. However, Teng did not attend despite multiple invitations, drawing disappointment from Onwusibe. The committee emphasizes the importance of adherence to existing laws governing business and financial operations in Nigeria.
The National Security Adviser’s office reportedly detained two senior Binance officials in Abuja as part of the government’s crackdown on cryptocurrency exchanges. Binance removed the naira from its peer-to-peer (P2P) service amid the crackdown. The P2P feature gained popularity in Nigeria following a ban on the crypto industry in 2021, which was later lifted by the CBN in December 2023.
In response to the lifting of the ban, the CBN issued guidelines for regulating virtual asset service providers. Nigeria also launched a central bank digital currency in 2022 and saw the launch of the naira-pegged cNGN stablecoin by the Africa Stablecoin Consortium in February.
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