Nigerian Committee Summons Binance CEO Over Financial Crime Suspicions
The Nigerian House of Representatives Committee on Financial Crimes has summoned Binance CEO Richard Teng amid suspicions of terrorism financing and money laundering. The committee’s chair, Ginger Onwusibe, issued an ultimatum for Teng to appear by March 4, 2024, warning of constitutional action if Binance ignores the summons.
The Central Bank of Nigeria raised concerns about Binance, alleging “suspicious flows” of funds through the exchange in 2023. Despite previous invitations, Teng had not appeared before the committee, drawing criticism for neglecting laws governing business and financial operations in the country.
The committee emphasized its constitutional mandate to combat financial crimes, particularly those involving foreign companies like Binance. Recent actions by Nigerian authorities include detaining two senior Binance officials in Abuja, signaling a crackdown on cryptocurrency exchanges amid concerns about the speculation surrounding the Nigerian naira.
Binance’s removal of the naira from its peer-to-peer service further escalated tensions, especially after Nigeria lifted a two-year ban on crypto transactions in 2023. The country also launched a central bank digital currency and witnessed the introduction of the naira-pegged cNGN stablecoin.
The House Committee’s summoning of Binance comes amidst broader allegations of financial crimes, including terrorism financing, money laundering, and tax evasion. These allegations reflect a growing global trend of regulatory scrutiny on cryptocurrency exchanges.
In response to the summons, Binance expressed apprehension, particularly after two executives were detained in Nigeria. The company’s legal representation expressed concerns about further executive appearances given the detentions.
Nigeria’s crackdown on crypto platforms follows economic challenges, including a rapid devaluation of the naira and rising inflation. Cryptocurrency exchanges like Binance have been implicated in exacerbating these economic crises, with authorities seeking substantial fines and regulatory penalties.
The parliamentary committee’s actions underscore Nigeria’s determination to hold companies like Binance accountable for their operations within the country. As regulatory scrutiny intensifies, cryptocurrency exchanges face increasing pressure to comply with local laws and regulations.
