Nigerian lawmakers are targeting Binance’s new CEO, Richard Teng, demanding his appearance to discuss the company’s KYC and AML policies contributing to terrorism financing and money laundering concerns. This ultimatum was issued by Committee Chairman Ginger Onwusibe during a recent panel, setting a deadline for Teng’s compliance within seven days. Onwusibe emphasized the committee’s readiness to exercise constitutional powers in case of non-compliance.
This initiative is not the first attempt to summon Teng, as a prior request dated December 12, 2023, sought his attendance at a hearing held on December 18, 2023. Onwusibe stressed the committee’s responsibility to safeguard the nation’s financial integrity, particularly amidst economic challenges. Allegations of terrorism financing, money laundering, and tax evasion against Binance have prompted the committee’s scrutiny.
The increasing focus on Binance by Nigerian authorities highlights the country’s efforts to address the risks and benefits of crypto adoption. Recent actions included instructing telcos to block access to Binance and Coinbase, attributing the naira’s depreciation to crypto exchange market manipulation. However, industry stakeholders point to government policies as the primary factor affecting the naira’s value.
In response to mounting pressure, Nigerian authorities detained two Binance executives and seized their passports, leading to Binance’s decision to remove the naira from its p2p trading service. Facing a hefty $10 billion fine and ongoing investigations into alleged money laundering activities, Binance navigates a turbulent regulatory environment in Nigeria.
Through these developments, Nigerian lawmakers assert the need for regulatory accountability within the crypto industry, signaling a push for increased oversight and compliance measures. Binance’s interactions with Nigerian authorities underscore the challenges and complexities facing cryptocurrency exchanges operating in the region.
Ian is a cryptocurrency enthusiast blending humor with professionalism. With an engineering background and a storyteller's heart, he simplifies the blockchain world with sharp analysis and a touch of wit. At Cryptowire, he brings his unique perspective to make digital financial innovation accessible to all.
