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 an ultimatum to appear by March 4, 2024. This comes after the Governor of the Central Bank of Nigeria expressed concerns about suspicious fund flows through Binance in 2023. Onwusibe warned that if Binance ignores the summons, the committee will take necessary actions. In a letter dated December 12, 2023, the committee had previously called for Teng to attend a hearing on December 18, 2023, and expressed disappointment at his absence. Onwusibe emphasized the committee’s commitment to fighting financial crimes and protecting Nigerians from foreign companies involved in such activities.
The National Security Adviser’s office has reportedly detained two senior Binance officials in Abuja, Nigeria’s capital, as part of the government’s efforts to regulate cryptocurrency exchanges and address speculation around the Nigerian naira. Binance had recently removed the naira from its peer-to-peer service amid the crackdown. The peer-to-peer feature allowed users to trade without involving a third party and gained popularity in Nigeria after the government banned the crypto industry in 2021. However, in December 2023, the Central Bank of Nigeria lifted the ban on banks engaging in crypto transactions and issued guidelines for regulating virtual asset service providers. Nigeria also became the second country to launch a central bank digital currency in 2022. Additionally, the Africa Stablecoin Consortium launched the naira-pegged cNGN stablecoin in a CBN regulator sandbox in February.