Binance CEO, Changpeng Zhao, has given the reason for the restriction of some Nigerian accounts. According to the crypto firm’s boss, there was a need to comply with international money laundering laws.
This was in response to some recent complaints from some Nigerian users that the Binance global exchange had blocked their accounts for weeks without any explanation or reason. A campaign was even launched to boycott the exchange based on this.
In a letter to Nigerian customers dated Jan. 29, Changpeng Zhao said the decision to restrict some personal accounts was to ensure user safety while more than a third of the affected accounts were restricted at the request of international law enforcement.
He also stated that the company had restricted the personal accounts of 281 Nigerian users, saying “currently, we have resolved 79 cases and continue to work through others. All non-law enforcement-related cases will be resolved within two weeks.”
“User security remains our top priority. We love and are devoted to our Nigerian community, but we must ensure that our users are safe. As such, protection mechanisms such as KYC, anti-money laundering measures, collaboration with law enforcement, and account restrictions are in place to ensure our community remains protected and that fraudulent activity is prevented. This is a global approach applied in every country,” adds Changpeng Zhao.
After the ban of cryptocurrency transactions by the Central Bank of Nigeria in February 2021, a lot of Nigerians have resorted to participate in the crypto market through P2P exchanges. A cryptocurrency exchange is a business that allows customers to trade cryptocurrencies or digital currencies for other assets, such as conventional fiat money or other digital currencies.
Binance, however, has been facing increased scrutiny globally with the recent ban in South Africa from conducting margin trading and the ban by the UK’s financial regulator to conduct operations in the country.
