Nigeria's House of Representatives Financial Crimes Committee has summoned Binance CEO Richard Teng to appear before the committee over suspicions of terrorism financing and money laundering. Committee chair Ginger Onwusibe issued an ultimatum to Binance management on March 1, demanding Teng's appearance before the committee on or before March 4, 2024.
The move comes after the Governor of the Central Bank of Nigeria (CBN) expressed concerns about Binance, citing "suspicious fund flows" in 2023. Onwusibe emphasized the seriousness of the matter, warning that failure to comply with the subpoena would result in the committee exercising its constitutional powers and taking necessary action.
In a letter dated December 12, 2023, the committee had previously requested Teng's attendance at a hearing scheduled for December 18, 2023. However, Teng failed to appear despite repeated invitations, prompting disappointment from Onwusibe. The committee chair underscored the importance of upholding existing laws governing commercial and financial operations within the country.
Onwusibe reiterated the committee's dedication to combating financial crime, emphasizing its constitutional mandate to protect Nigerians from such offenses, particularly those involving foreign entities. Meanwhile, reports emerged that two senior Binance officials were detained by the Office of the National Security Adviser in Abuja, Nigeria's capital, as part of the government's efforts to crack down on cryptocurrency exchanges amid concerns over speculation surrounding the Nigerian naira.
In response to regulatory pressures, Binance removed support for the naira from its peer-to-peer (P2P) service on February 28. This decision coincided with broader regulatory actions targeting cryptocurrency exchanges. P2P functionality, which allows direct transactions between users without intermediaries, gained traction in Nigeria following the government's crackdown on the country's cryptocurrency industry in 2021.
Despite these regulatory challenges, the central bank lifted a two-year ban on banks engaging in cryptocurrency trading in December 2023 and issued guidelines for regulating virtual asset service providers. Additionally, Nigeria became the second country to launch a central bank digital currency in 2022. In February, the African Stablecoin Alliance introduced the naira-pegged cNGN stablecoin within the CBN regulatory sandbox, signaling ongoing developments in Nigeria's digital currency landscape.
