The Nigerian House of Representatives Committee on Financial Crimes has called Binance CEO Richard Teng to appear before the committee over suspicions of terrorism financing and money laundering. The committee issued an ultimatum to Binance management to appear by March 4, 2024.
The Nigerian House of Representatives Committee on Financial Crimes has summoned Binance CEO Richard Teng to appear before the committee regarding concerns of terrorism financing and money laundering.
The committee's Chair, Ginger Onwusibe, issued an ultimatum to Binance management on March 1, setting a deadline for their appearance on or before March 4, 2024.
The Central Bank of Nigeria (CBN) Governor raised alarms on Feb. 27 over Binance, citing "suspicious flows" of funds through the exchange in 2023.
Onwusibe cautioned that failure to comply with the summons would result in the committee exercising its constitutional authority and taking necessary actions. Punch reported that a letter dated Dec. 12, 2023, signed by Onwusibe, called for Teng's appearance before a hearing on Dec. 18, 2023.
Expressing disappointment at Teng's repeated non-attendance, Onwusibe emphasized the importance of adhering to existing laws governing business and financial operations in the country.
Onwusibe reiterated the committee's dedication to combating financial crimes, citing constitutional empowerment to protect Nigerians from financial crimes, especially those involving foreign entities.
Reportedly, the National Security Adviser's office has detained two senior Binance officials in Abuja as part of the government's efforts to regulate cryptocurrency exchanges and control speculation surrounding the Nigerian naira. Binance ceased offering the naira on its peer-to-peer (P2P) service on Feb. 28 amidst the crackdown.
The P2P feature enables users to trade without an intermediary, gaining popularity in Nigeria in 2021 following the government's ban on the crypto industry during former President Muhammadu Buhari's administration.
However, in December 2023, the CBN lifted a two-year ban on banks conducting crypto transactions and introduced guidelines for regulating virtual asset service providers. Nigeria was the second country to launch a central bank digital currency in 2022. Additionally, in February, the Africa Stablecoin Consortium introduced the naira-pegged cNGN stablecoin in a CBN regulatory sandbox.