In Brief:
- The suspension of 281 Nigerian Crypto accounts was at the request of International Law Enforcement.
- The need to comply with International Money Laundering rules led to the suspension of the accounts.
- Cases that are not related to law enforcement will be settled within two weeks.
In a statement to Nigerian consumers dated Jan. 29, Binance CEO Changpeng Zhao stated that the decision to block some personal accounts was made to ensure user safety, with more than a third of the accounts impacted being restricted at the request of international law enforcement.
Binance, the world’s largest cryptocurrency exchange, has suspended 281 Nigerian users’ personal accounts, citing the need to comply with international money laundering rules, according to its CEO.
“We’ve settled 79 cases so far, and we’re still working on the others. All cases that are not related to law enforcement will be settled within two weeks, “Changpeng Zhao shared.
Despite a central bank ban, Nigerians have continued to use cryptocurrency for business, to preserve their savings as the Naira currency depreciates, and to send payments abroad because it is difficult to obtain US dollars in the country.
Some Nigerian Binance users recently started a boycott of the platform after their accounts were frozen, with the hashtag ‘#BinanceStopScamming‘ becoming a trending issue.
CZ issued a statement in response to widespread criticism, stating that “User security” is his exchange’s top priority. Zhao went on to say, “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 fraudulent activity is prevented.”
Pakistan, the United States, the United Kingdom, South Africa, Australia, Norway, Italy, India, Malaysia, Singapore, Turkey, and Lithuania are among the countries investigating the cryptocurrency exchange Binance.
