The Central Bank of Nigeria (CBN) has maintained that Binance conducted operations in Nigeria without proper authorization, as legal proceedings involving the cryptocurrency exchange continue in Abuja.
The case forms part of an ongoing regulatory and criminal investigation involving allegations of financial misconduct, money laundering, and unauthorized crypto operations.
During court proceedings at the Federal High Court in Abuja, a senior official from the Central Bank of Nigeria testified that Binance operated in the country without formal approval from financial regulators. The case was filed by the Economic and Financial Crimes Commission (EFCC), which has accused Binance and two former executives of involvement in financial activities linked to alleged unlawful transactions, including the concealment of proceeds estimated at $35.4 million.
The charges relate to provisions of Nigeria’s Money Laundering (Prevention and Prohibition) Act, 2022. Binance has denied the allegations.
During cross examination, the CBN official confirmed that Binance was accessible to users in Nigeria during the period under review and acknowledged that cryptocurrency activity had been subject to regulatory restrictions at various times.
He also stated that cryptocurrency usage had existed in Nigeria for over a decade, reflecting the long-standing presence of digital assets in the country.
When questioned on whether Binance deliberately concealed its operations, the official noted that users often accessed the platform through pseudonymous accounts but did not confirm intentional concealment by the company itself. Following the testimony, the court adjourned the case for continuation at a later date. The case is part of a broader regulatory effort in Nigeria to strengthen oversight of cryptocurrency activities.
In 2024, Nigerian authorities intensified enforcement actions against crypto-related services, including restrictions on banking channels connected to digital asset transactions. Several fintech companies were directed to monitor or limit exposure to crypto-linked accounts. Additionally, Binance suspended peer-to-peer trading services involving the Nigerian Naira following increased regulatory pressure.
Other regulatory bodies, including the Securities and Exchange Commission (SEC) and the Federal Inland Revenue Service (FIRS), have also introduced or proposed measures to regulate taxation and trading activity within the sector. The ongoing legal proceedings involving Binance highlight Nigeria’s continued efforts to regulate cryptocurrency operations within its financial system. The outcome of the case is expected to have implications for how digital asset platforms operate in the country going forward.
