The Nigerian House of Representatives Committee on Financial Crimes has demanded the presence of Richard Teng, CEO of Binance, amid allegations of terrorism financing and money laundering. This action stems from concerns voiced by the Central Bank of Nigeria (CBN) about suspicious fund flows through the exchange in 2023. Ginger Onwusibe, the committee’s Chair, issued a stern ultimatum to Binance’s management, mandating Teng’s appearance by March 4, 2024, as reported by Punch.
Strong Warnings and Legal Actions
The committee has not taken Binance’s lack of response lightly. Onwusibe, expressing dissatisfaction with Teng’s failure to attend a previously scheduled hearing on December 18, 2023, highlighted the disregard for national financial regulations. The committee has made it clear that ignoring their summons could lead to the exercise of constitutional authority to enforce compliance.
Efforts to Combat Financial Crimes
In its pursuit to curb financial crimes, the Nigerian government has taken significant steps, including the detention of two senior Binance officials in Abuja. These actions align with the government’s broader crackdown on cryptocurrency exchanges, which aims to stabilize the Nigerian naira and control speculative activities.
Changes in Nigeria’s Crypto Landscape
The backdrop to these developments includes a dynamic shift in Nigeria’s stance towards cryptocurrencies. The country, which saw the popularity of Binance’s peer-to-peer (P2P) service soar in 2021 after a ban on crypto activities, has recently seen changes in regulatory attitudes. The CBN lifted a two-year prohibition on crypto transactions by banks in December 2023 and introduced guidelines for virtual asset service providers.
Furthermore, Nigeria pioneered the launch of a central bank digital currency in 2022 and saw the introduction of the naira-pegged cNGN stablecoin by the Africa Stablecoin Consortium in a regulatory sandbox in February. The Nigerian authorities’ summoning of Binance’s CEO underscores a rigorous approach to tackling financial crimes and regulating the cryptocurrency market. These developments reflect Nigeria’s evolving regulatory framework aimed at safeguarding financial stability while embracing the potential of digital currencies.
