Binance, the largest cryptocurrency exchange, has revealed that it restricted 281 accounts belonging to Nigerians in 2022 due to concerns about money laundering, News About Nigeria reports.
The exchange also mentioned that it collaborated with the federal government to safeguard users from illicit activities.
In a statement published on its website on Wednesday, Binance mentioned its decision to stop naira-to-dollar exchange services a few weeks ago, following a dispute with Nigerian authorities who accused the platform of manipulating the country’s foreign exchange rate.
The exchange noted that its team visited Nigeria twice in the fourth quarter of 2022, conducting comprehensive law enforcement training sessions for officials of the Economic and Financial Crimes Commission (EFCC).
With over 30 investigators in attendance for each full-day session, Binance provided a detailed overview of its operations, training Nigerian law enforcement on the intricacies of exchanges in the digital asset ecosystem.
“During these sessions, various case studies were presented, including those involving suspects from Nigeria. The positive feedback received from Nigerian investigators underscored their strong desire to sustain this cooperative format,” the platform noted.
Binance said its financial crime compliance teams processed 626 information requests related to Nigeria or from local law enforcement agencies between June 2020 and February 2024.
The Nigeria Police Force, EFCC, and INTERPOL Nigeria were among the organisations that benefited from the information supplied by Binance in their efforts to combat crimes ranging from money laundering to kidnapping, extortion, and scams.
In August 2023, Binance conducted a three-hour online workshop for 70 EFCC officials, focusing on interpreting Binance’s operational responses and determining how best to utilise their assistance.
“We worked closely with the authorities to safeguard users from illegal activity in a well-publicized action that occurred in January 2022, restricting 281 accounts that belonged to Nigerian residents because of worries about money laundering,” Binance added.
The business said it is crucial to collaborate with well-known international companies like Binance to support the gradual growth of this ecosystem and create an atmosphere that is encouraging for thriving local startups.
Binance noted that working with Nigerian regulators and law enforcement will speed up the adoption of financial technology.
It advises depending on top-tier partners who have a track record of successful collaborations with both domestic and foreign agencies.
Going forward, Binance stated that it was eager to maintain good relations and work towards making every Nigerian’s life better by continuing to work together and promoting the country’s fintech development.
