The House of Representatives Committee on Financial Crimes summoned Binance chief executive Richard Teng, adding Nigeria to the worldwide wave of investigations into the cryptocurrency sector for potential money laundering and terrorism funding.
Local media outlets have reported that the committee has issued a seven-day ultimatum to Binance and its CEO, demanding an appearance in response to suspicions of financial criminal participation. The Central Bank of Nigeria has warned Binance, the biggest cryptocurrency exchange in the world, about possible illegal activity.
The Financial Crimes Committee Chairman, Ginger Onwusibe, voiced her displeasure that Binance had ignored her repeated invitations. If Binance did not comply with the summons, Onwusibe warned firmly that the committee would use its constitutional powers.
The report states that the Committee’s goal is to secure Binance’s accountability for the alleged infractions of Nigerian laws pertaining to financial and economic activities. In addition, Ginger Onwusibe said:
“We must also safeguard and preserve the nation’s financial resources, particularly in light of the present sudden decline into recession. Allegations against Binance, including tax evasion, money laundering, and terrorist funding, are sufficiently damning.”
In a prior summons, the committee had alleged, among other things, that Binance’s Managing Director had engaged in terrorist funding, money laundering, and tax fraud. In order to safeguard Nigerian investors from unethical companies, Onwusibe stressed the committee’s resolve to fight financial crimes.
According to the article, the committee’s goal is to “protect the country’s finances and block routes that may possibly fuel illicit operations.” This comes at a time when Nigeria’s economy is struggling due to a recession and other difficulties.
Foreign firms operating in Nigeria, such as Binance, should pay taxes and have a real presence so that Nigerian users may resolve their problems, according to Onwusibe.
The committee made it clear that they would not stand for the “exploitation” of Nigerian investors and that those responsible would face consequences. To sum up, Onwusibe found:
“No amount of deception or avoidance would be able to prevent our responsibility to safeguard Nigerian investors from fraudulent firms. If your platform has more than 10 million Nigerian users, you are legally required to pay taxes and have a physical office where users may go to report problems with your service. The time for taking advantage of others is past, and those responsible must face the music.”
Notably, the latest move by Nigerian authorities against Binance is only one of several steps taken over the last seven days.
Nigeria has fined the biggest exchange in the world $10 billion, according to Bitcoinist’s Friday report. The country claims the exchange played a major role in the depreciation of the Nigerian naira.
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