Binance CEO called by Nigerian committee to address suspicions of financial crime

The House of Representatives Committee on Financial Crimes in Nigeria has summoned Binance CEO Richard Teng to appear before them regarding suspicions of terrorism financing and money laundering. The committee’s Chair, Ginger Onwusibe, has given Binance until March 4, 2024, to comply with the summons. This comes after the Governor of the Central Bank of Nigeria expressed concerns about “suspicious flows” of funds through the exchange in 2023. Onwusibe warned that if Binance ignores the summons, the committee will take necessary actions within their constitutional authority. The committee had previously called for Teng to appear before a hearing on December 18, 2023, but he did not attend. Onwusibe expressed disappointment and emphasized the committee’s commitment to combating financial crimes. The National Security Adviser’s office has reportedly detained two senior Binance officials in Abuja as the Nigerian government cracks down on cryptocurrency exchanges. Binance recently removed the Nigerian naira from its peer-to-peer service amid the government’s crackdown. However, in December 2023, the Central Bank of Nigeria lifted a ban on banks engaging in crypto transactions and issued guidelines for regulating virtual asset service providers. Nigeria was the second country to launch a central bank digital currency and the Africa Stablecoin Consortium launched the naira-pegged cNGN stablecoin.