The biggest cryptocurrency exchange, Binance, announced that it limited 281 accounts belonging to Nigerians in 2022 because of concerns about money laundering.
The exchange mentioned it also worked with the Federal Government to protect users from illegal activity.
This detail was revealed in a statement released on its website on Wednesday.
Some weeks ago, Binance declared its choice to halt naira-to-dollar exchange services after a disagreement with Nigerian authorities, who accused the platform of manipulating the country’s foreign exchange rate.
The exchange noted that its team visited Nigeria two times in the fourth quarter and held comprehensive law enforcement training sessions for officials of the Economic and Financial Crimes Commission.
Binance said it offered a detailed overview of its operations, training Nigerian law enforcement on the complexities of exchanges in the digital asset ecosystem, with over 30 investigators attending each full-day session.
“During these sessions, various case studies were presented, including those involving suspects from Nigeria. The platform noted the strong desire of Nigerian investigators to maintain this cooperative format, highlighting the positive feedback received,
“Binance’s financial crime compliance teams handled 626 information requests related to Nigeria or from local law enforcement agencies between June 2020 and February 2024.
“The Nigeria Police Force, the Economic and Financial Crimes Commission, and INTERPOL Nigeria were among the many organisations that benefited from the information we supplied in their efforts to combat crimes like money laundering, kidnapping, extortion, and scams,” it said.
The exchange also organized a three-hour online workshop for 70 EFCC officials in August 2023, with the main objectives being to interpret Binance’s operational responses and decide how best to utilize their help.
“We cooperated with the authorities to protect users from illegal activity in a well-known action that took place in January 2022, restricting 281 accounts belonging to Nigerian residents due to concerns about money laundering,” it added.
The crypto exchange recognizes Nigeria’s thriving fintech ecosystem and predicts that almost half of all investments in Africa from 2019 to 2023 will be directed to the country.
“Operating alongside established global players like Binance is considered crucial for the cohesive growth of this ecosystem, creating a supportive environment for dynamic local startups,” the company noted.
Binance explained that working with regulators and law enforcement in Nigeria would speed up its adoption of financial technology.
According to the exchange, the recommendation is to depend on top-tier partners with a proven history of successful partnerships with both Nigerian and international authorities.
Looking forward, Binance expressed enthusiasm to continue positive interactions, aiming to help in the prosperity of every Nigerian through ongoing collaboration and support for the nation’s financial technology evolution.
