An official from the Central Bank of Nigeria (CBN) has stated that Binance was operating illegally in the West African country in multiple ways. The development comes amid the ongoing legal battle of the prominent Nigerian crypto exchange.
Binance Violated Naira Trading Policy – CBN Official
In April 2024, the Nigeria Economic Financial Crime Commission (EFCC) a lawsuit filed against Binance and its director Tigray Gambaryan, accusing both parties of tax evasion, currency speculation, and money laundering worth approximately $34.4 million.
After an adjournment in June, the trial resumed on Friday with the prosecution introducing as a witness Dr Olubukola Akinwunmi, Head of Payments Policy and Regulation Department at the CBN.
According to a local media report NairametryAkinwunmi alleged that Binance violated Nigerian laws by offering deposit and withdrawal services, an activity restricted to banks and registered financial institutions under strict supervision of the CBN.
Furthermore, Akinwunmi commented on Binance’s peer-to-peer feature, which allowed users to exchange Nigerian Naira for US dollar assets. The CBN official stated that the crypto exchange required a license from the Apex Bank as an “authorized giver” or “Bureau de Change” to offer such services in Nigeria. Akinwunmi also criticized the anonymous nature that protected the identity of users, thereby violating certain Nigerian laws.
It is worth noting that Binance implements a mandatory know-your-customer identification process for all users of its P2P service and its other trading features. However, in May, Binance, next to others exchangeshave disabled their Naira P2P services following allegations of currency speculation, causing the Naira to rapidly depreciate.
After considering the testimonies, Justice Emeka Nwite of the Federal High Court in Abuja ordered the case to be further adjourned to July 16 to allow time for cross-examination of the suspects’ lawyers.
Gambian health is a major problem
In other news, the health of Gambians has become a major issue in court. Judge Nwite on Friday demanded that the National Correctional Services produce a medical report of the arrested Binance executive.
The Nigerian judge has warned that medical providers in prison will be taken to court if the directive is not adhered to. Gambaryan has been in Kuje Prison in Abuja since April and is said to have had pneumonia and malaria since then, prompting investigations into his health.
Main image of Pulse Nigeria, chart from Tradingview