The Binance exchange is a leading cryptocurrency exchange founded in 2017, featuring a strong focus on altcoin trading.
It offers crypto-to-crypto trading in more than 350 cryptocurrencies and virtual tokens, including bitcoin, ether, litecoin, dogecoin, and its own coin, BNB.
CBN’s claim on $26bn suspicious flows through Binance
Governor of the Central Bank of Nigeria, Olayemi Cardoso claimed that more than $26bn was channelled through the Binance platform in the last year. Cardoso made this disclosure last week at a press briefing after the 293rd meeting of the Monetary Policy Committee in Abuja.
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Crypto Investigator’s Response to CBN’s Claim
In response to Cardoso’s claim, Obinna Iwuno, President of the Stakeholders in Blockchain Technology Association of Nigeria and a trained crypto investigator, said, “The CBN governor said $26bn is unidentified, but what he has not told us is how they arrived at the $26bn because that is the only basis that I will fault the CBN.”
Iwuno’s Explanation of Binance’s Trading Anonymity
Iwuno, who is also a certified cryptocurrency compliance specialist, explained that traders on Binance cannot be anonymous because their transactions pass through the blockchain, which is traceable. He added that most crypto platforms use the Bank Verification Number and driver’s licence as know-your-customer verification measures.
Nigeria’s failure to regulate virtual asset services
Iwuno noted that the Federal Government has failed to regulate virtual asset services in the country; hence, there is no regulation that binds Binance to Nigeria, which has one of the company’s biggest traders.
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In a recent development, Binance announced the cessation of services related to the Nigerian naira (NGN) on its platform, citing regulatory pressure and accusations of currency manipulation. The move comes as Nigerian authorities have detained two Binance officials and imposed a hefty fine on the exchange.
Iwuno’s assertion that traders on Binance are not anonymous and that their transactions are traceable challenges the perception that cryptocurrency trading platforms offer anonymity. However, the lack of regulation in Nigeria has allowed Binance to operate without being bound by local laws, leading to the recent announcement of service suspension.