The Nigerian Central Bank’s deputy director, Olubukola Akinwumi, testified in a trial against Binance, accusing the platform of violating regulations by facilitating transactions involving the Naira. Akinwumi claimed that Binance allowed users to use pseudonyms for transactions, contrary to the CBN’s rules that require disclosing true identities. He also mentioned that Binance’s peer-to-peer platform enabled the transfer of Naira, which is a regulated activity under the CBN’s purview. Despite Binance discontinuing its P2P feature for Nigerians in February, Akinwumi highlighted that the platform still allowed depositing and withdrawing Naira using a ‘cash link,’ which again falls under CBN regulations. It’s important to note that Binance is not licensed by the CBN as a payment service provider. The trial is ongoing, and Akinwumi is scheduled to be cross-examined on July 16. Nigeria has been cracking down on crypto service providers following the NSA’s classification of crypto trading as a national security threat. The country’s SEC recently issued a 30-day window for crypto exchanges and digital asset traders to re-register under the new regime, warning of enforcement actions for non-compliance. This marks a significant shift in Nigeria’s stance towards crypto, especially since the CBN lifted a two-year ban on crypto transactions just last December. The outcome of the trial and the broader implications for the crypto industry in Nigeria remain to be seen.
