Binance Holdings, one of the world’s largest cryptocurrency exchanges, said it had blocked some Nigerian users’ personal accounts in order to comply with anti-money laundering legislation and safeguard the platform’s security for traders.
“Protection mechanisms such as know your customer, anti-money laundering measures, collaboration with law enforcement, and account restrictions are in place to ensure our community remains protected,” the crypto exchange said in a statement on its website.
“Some 281 Nigerian accounts have been affected by these personal account restrictions, with approximately 38% of these cases restricted at the request of international law enforcement,” it said.
Here Is What You Need To Know
- Many Nigerians who trade on the Binance platform have recently expressed frustration with their inability to initiate or complete transactions. Since the Central Bank of Nigeria advised lenders not to engage with cryptocurrency exchanges and ordered digital currency traders to close accounts last year, users in the West African country have had difficulty trading bitcoin.
- Despite this, Nigerians continue to use virtual currencies to protect themselves against inflation and the naira’s decline, as well as to send money abroad. According to a Statista survey, people in the country have the largest share of such assets per capita in the world.
- Binance has resolved 79 of the account restriction issues and wants to increase customer support and risk agents to speed up the process, according to the company.
“All non-law enforcement-related cases will be resolved within two weeks,” it said.
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Charles Rapulu Udoh
Charles Rapulu Udoh is a Lagos-based lawyer who has advised startups across Africa on issues such as startup funding (Venture Capital, Debt financing, private equity, angel investing etc), taxation, strategies, etc. He also has special focus on the protection of business or brands’ intellectual property rights ( such as trademark, patent or design) across Africa and other foreign jurisdictions.
He is well versed on issues of ESG (sustainability), media and entertainment law, corporate finance and governance.
He is also an award-winning writer