The Central Bank of Nigeria (CBN) has voiced strong criticism against Binance, a leading global cryptocurrency exchange platform, accusing it of conducting unauthorized banking operations within the country.
According to the CBN, Binance has been offering services that resemble those of traditional banks without the necessary licenses or regulatory approvals. This includes accepting deposits, facilitating withdrawals, and providing other financial services typically reserved for licensed financial institutions.
The regulatory body emphasized that such activities pose significant risks to Nigerian consumers and the overall financial system. It warned that entities operating outside regulatory frameworks could potentially facilitate money laundering, terrorist financing, and other illicit activities.
In response to these allegations, Binance has stated its commitment to complying with local regulations and working constructively with regulatory authorities worldwide. The exchange emphasized its dedication to maintaining high standards of security and compliance while continuing to provide innovative financial services to its global user base.
The CBN’s critique of Binance underscores ongoing regulatory challenges in the cryptocurrency industry, particularly concerning platforms offering services that blur the lines between traditional finance and digital assets. As discussions evolve, the outcome could shape the regulatory landscape for cryptocurrency exchanges operating in Nigeria and beyond.
