Nigerian House of Representatives Summons Binance CEO Over Financial Crimes Allegations

The Nigerian House of Representatives Committee on Financial Crimes has summoned Binance CEO Richard Teng amidst concerns of terrorism financing and money laundering. The committee, chaired by Ginger Onwusibe, issued an ultimatum for Teng to appear before March 4, 2024.

Central Bank of Nigeria Raises Concerns About Binance

On February 27, the governor of the Central Bank of Nigeria (CBN) voiced concerns regarding Binance, alleging suspicious fund flows through the exchange in 2023.

Despite a summons dated December 12, 2023, and subsequent invitations, Teng has failed to appear before the committee. Onwusibe expressed disappointment, highlighting the importance of adherence to existing laws governing business and financial operations.

Nigerian Government Cracks Down on Cryptocurrency Exchanges

The Nigerian government intensifies its crackdown on cryptocurrency exchanges amid speculation surrounding the national fiat currency, the Nigerian naira. The National Security Adviser’s office reportedly detains two senior Binance officials in Abuja.

Binance removed the naira from its peer-to-peer (P2P) service on February 28. This move follows the government’s efforts to regulate cryptocurrency exchanges.

Despite regulatory challenges, Nigeria witnesses shifts in its cryptocurrency landscape. The Central Bank of Nigeria lifted a two-year ban on banks engaging in crypto transactions in December 2023. Additionally, the Africa Stablecoin Consortium launched the naira-pegged cNGN stablecoin in February, further shaping Nigeria’s digital asset ecosystem.