CBN Official Testifies Binance Illegally Operated in Nigeria

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As a crypto investor with experience in the Nigerian market, I find the ongoing legal battle between Binance and Nigerian authorities disheartening. The accusations of unlicensed operations against Binance are concerning, especially since it has been a popular platform for many Nigerians looking to trade cryptocurrencies.

In a recent court hearing in Abuja, Nigerian authorities stepped up their legal action against the cryptocurrency exchange Binance. Central Bank representatives presented evidence that Binance had been operating without a valid license within Nigeria’s jurisdiction. This claim aligns with previous allegations suggesting that illicit transactions were taking place on the platform.

Binance Accused of Unlicensed Operations in Nigeria

During a recent court case in Nigeria, Olubukola Akinwunmi, a notable figure at the Central Bank, testified that Binance did not have the necessary authorization to facilitate cryptocurrency transactions within the country. This absence of a formal license became a pivotal issue during the proceedings, and the Economic and Financial Crimes Commission emphasized it as a possible ground for legal infringements by Binance.

Akinwunmi pointed out that Binance’s offerings were similar to those of a money brokerage, which need special regulatory permission. He emphasized the platform’s functionality for swapping naira for other currencies. Normally, such transactions involve obtaining approval from the central bank as a licensed foreign exchange or a money changer.

As an analyst, I’ve noticed that a central bank official has voiced concerns over Binance’s permissiveness towards pseudonymous trading on their platform, despite Binance implementing rigorous identity verification procedures for Nigerian users. The issue lies in the fact that these measures have been subject to scrutiny. Binance requires Nigerian traders to provide local banking details and government-issued IDs for verification purposes.

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Gambaryan’s Health Ignored by Nigerian Officials

Tigran Gambaryan, the US-appointed compliance executive at Binance, is among those accused in conjunction with the company. Arrested in February, Gambaryan has been imprisoned at Kuje Prison and has suffered from serious health complications, including malaria and pneumonia. His condition deteriorated significantly, resulting in a fainting spell during the commencement of the trial in May.

I’ve been closely monitoring the situation regarding Gambaryan’s case, where a judge ordered medical tests due to health concerns. However, prison officials apparently ignored this mandate and carried out the examinations weeks later. To add insult to injury, his defense team hasn’t received the test results yet. This negligent behavior has drawn sharp criticism from Judge Emeka Nwite, who has publicly reprimanded both the prosecution and prison authorities for disregarding his clear instructions.

Expert: Justice Nwite issued a warning about potential repercussions if the required medical reports are missing at the upcoming court hearing on July 16. Concurrently, prison authorities have refuted claims of mistreatment against Gambaryan, insisting that his health condition is not critical. The ongoing trial has brought to light the wider issues surrounding cryptocurrency regulations in Nigeria.

As a crypto investor, I’ve been following the recent developments with Binance and their decision to halt operations for Nigerian users due to legal challenges. This unexpected move has affected an estimated 13 million of us in the community, leaving many of us scrambling to find alternative trading platforms that suit our needs.

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2024-07-06 09:10