The House of Representatives Committee on Financial Crimes has summoned Binance CEO, Richard Teng, to appear before the committee to address concerns related to terrorism financing and money laundering.
The committee’s Chair, Ginger Onwusibe, issued a request for Teng to comply on or before March 4, 2024.
The move comes after the Central Bank of Nigeria (CBN) expressed apprehensions about Binance, citing “suspicious flows” of funds through the exchange in 2023.
The committee had previously called for Teng to appear at a December 18, 2023, hearing, but the CEO did not attend.
Onwusibe expressed disappointment over Teng’s non-compliance, emphasizing the importance of adhering to existing laws governing business and financial operations in the country.
He said the committee is committed to combating financial crimes, stressing their constitutional authority to safeguard Nigerians from such activities, particularly those involving foreign companies.
Recall that the National Security Adviser’s office had detained two senior Binance officials in Abuja as part of the government’s broader efforts to regulate cryptocurrency exchanges and control speculation on the Nigerian naira.
Binance, in response to the increased scrutiny, removed the naira from its peer-to-peer (P2P) service on February 28.
The P2P feature, which allows users to trade without involving a third party, gained popularity in Nigeria in 2021 after the government banned its thriving crypto industry.
However, the CBN lifted the ban in December 2023, simultaneously issuing guidelines for regulating virtual asset service providers.
In 2022, Nigeria became the second country to launch a central bank digital currency (CBDC).
