The Nigerian House of Representatives Committee on Financial Crimes has called Binance CEO Richard Teng to appear before the committee over suspicions of terrorism financing and money laundering. The committee’s Chair, Ginger Onwusibe, requested the management of Binance on Mar. 1 to appear before the committee on or before Mar. 4, 2024.
The governor of the Central Bank of Nigeria (CBN) raised concerns on Feb. 27 about Binance, alleging “suspicious flows” of funds through the exchange in 2023. Onwusibe warned that if Binance ignores the summons, the committee will exercise its constitutional authority and take necessary actions. According to Punch, in a letter dated Dec. 12, 2023, signed by Onwusibe, the committee called for Teng to appear before a hearing on Dec. 18, 2023.
Onwusibe expressed disappointment at Teng’s consistent absence despite frequent invitations. He emphasized this points to a lack of respect for the country’s business and finance laws. Onwusibe repeated the committee’s commitment to combatting money misdeeds. He pointed out that the law empowers them to protect Nigerians from such illegal acts. Specifically, those committed by overseas organizations.
Binance Removes Naira From P2P
The National Security Adviser’s office has also reportedly detained two senior Binance officials in the Nigerian capital, Abuja, as the government looks to crack down on cryptocurrency exchanges to tame the speculation about its fiat currency, the Nigerian naira. Binance removed the naira from its peer-to-peer (P2P) service on Wednesday, Feb. 28, amid a crackdown on the crypto exchange.
The peer-to-peer (P2P) feature enables users, both buyers and sellers, to engage in trade directly without the need for intermediaries. Its popularity surged in Nigeria in 2021, driven by the government’s ban on the flourishing crypto industry during the administration of former President Muhammadu Buhari.
In Dec 2023, Nigeria’s Central Bank (CBN) lifted a ban that lasted for two years. This ban stopped banks from joining in crypto transactions. In the same stroke, they brought out rules guiding virtual asset service providers. It’s worth saying that Nigeria, in 2022, was the second nation to launch a digital currency by its central bank.
More so, in February, a group named the Africa Stablecoin Consortium revealed a new stablecoin called cNGN. Tied to the naira, this coin was introduced in a regulatory sandbox overseen by the CBN.
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