06 Jul

The Central Bank of Nigeria (CBN) has raised serious allegations against Binance, the world's largest cryptocurrency exchange, claiming it has been involved in unauthorized and illegal foreign exchange transactions within the country.

The CBN's Director of Corporate Communications, Isaac Okorafor, issued a statement detailing the bank's concerns, stating that Binance has been operating in Nigeria without obtaining the necessary licenses and approvals. The bank emphasized that such activities violate existing financial regulations and pose risks to the stability of the Nigerian economy.

According to the CBN, Binance has been facilitating the exchange of cryptocurrencies like Bitcoin and Ethereum for Nigerian Naira, acting as an unlicensed money transmitter. This has raised alarms within the central bank, as it bypasses traditional banking channels and undermines its efforts to control the flow of capital.

Furthermore, the CBN has accused Binance of facilitating illegal capital flight from Nigeria, exacerbating the country's foreign exchange challenges. The bank has expressed concerns that the unregulated nature of cryptocurrency transactions could be exploited for illicit activities such as money laundering and terrorism financing.

Binance has yet to respond to the CBN's allegations. The exchange has been facing increased scrutiny from regulators worldwide due to concerns about its operations and compliance with financial regulations.

July 2024, Cryptoniteuae

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