Nigerian Lawmakers Summon Binance CEO Amid Financial Crime Suspicions
The Nigerian House of Representatives Committee on Financial Crimes has summoned Binance CEO Richard Teng to address suspicions of terrorism financing and money laundering. Committee Chair Ginger Onwusibe issued a deadline for Binance management to appear before March 4, 2024.
Concerns raised by the Central Bank of Nigeria (CBN) on February 27 highlighted alleged “suspicious flows” of funds through Binance in 2023. Onwusibe warned of potential consequences if Binance disregards the summons, emphasizing the committee’s constitutional authority.
Despite previous invitations, Teng failed to attend a hearing on December 18, 2023, prompting disappointment from Onwusibe. The committee stressed the importance of adhering to existing laws governing business and financial operations in Nigeria.
Emphasizing their commitment to combating financial crimes, the committee cited constitutional empowerment to protect Nigerians from such activities, especially involving foreign entities.
Meanwhile, reports suggest that two senior Binance officials have been detained by the National Security Adviser’s office in Abuja. This crackdown on cryptocurrency exchanges aims to address speculation surrounding Nigeria’s fiat currency, the Nigerian naira. Binance removed the naira from its peer-to-peer (P2P) service amid the government’s regulatory actions.
Despite previous bans on cryptocurrency transactions, the CBN lifted restrictions in December 2023 and issued guidelines for regulating virtual asset service providers. Additionally, Nigeria introduced a central bank digital currency in 2022 and witnessed the launch of the naira-pegged cNGN stablecoin by the Africa Stablecoin Consortium in February.
