Binance, the cryptocurrency exchange, blocked 281 Nigerian traders’ accounts to prevent money laundering and to safeguard platform security, according to CEO Changpeng Zhao.
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Binance CEO @cz_binance pens a letter to Nigerian Binancians as he highlights the company’s dedication to the community and its next steps.
Read it here — https://t.co/KexwRTIKdl
— Binance Africa (@BinanceAfrica) January 29, 2022
According to him, in 38% of cases the restrictions were imposed at the request of international law enforcement authorities.
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Earlier, Binance Africa, in response to user complaints, published a form for blocked account holders to fill out to clarify the situation. The company stressed that it had not imposed restrictions without cause.
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‘Security mechanisms, such as KYC, anti-money-laundering measures, cooperation with law enforcement, and account restrictions, ensure the protection of our community and prevent fraudulent activity. This is a global approach applied in every country,’ Zhao stressed.
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He acknowledged delays in handling user inquiries by the support service. According to him, the exchange has issued positive decisions in 79 cases. All cases not related to law enforcement requests will be reviewed within two weeks, Zhao said.
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To this end, he promised to allocate more staff with expertise in the Nigerian market.
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Back in February 2021, the Central Bank of Nigeria forbade commercial financial institutions from providing services to cryptocurrency exchanges and companies dealing with digital assets.
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The regulator asserted that the restrictions do not apply to individuals, however, in November it ordered to close all accounts related to trading in digital assets.
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