The Governor of the Central Bank of Nigeria (CBN), Dr. Olayemi Cardoso, revealed alarming figures regarding the flow of funds through Binance Nigeria, an online cryptocurrency exchange.
According to Cardoso, an estimated $26 billion was transferred through Binance Nigeria within the span of one year, originating from undisclosed sources.
Addressing journalists after a committee meeting at the CBN headquarters in Abuja on Tuesday, Cardoso emphasized the need for stringent regulations to fortify the economy. He reiterated the CBN’s stance on clamping down on crypto exchanges, including Binance.
The Securities and Exchange Commission (SEC), had declared Binance Nigeria Limited’s operations illegal back in June 2023, adding weight to concerns over the platform’s activities.
Recent statements by Bayo Onanuga, the Special Adviser to President Bola Tinubu on Information and Strategy, further underscored the need for action.
Onanuga advocated for a ban on Binance and other crypto platforms operating in Nigeria, citing potential distortions in foreign exchange (FX) rates.
Collaboration between the CBN and the SEC aims to address concerns of market manipulation, particularly in the FX market. Cardoso highlighted ongoing efforts involving various agencies such as the Economic and Financial Crimes Commission (EFCC), and the police, along with the Office of the National Security Adviser (ONSA).
In a joint announcement on February 20, 2024, the CBN and the ONSA declared a partnership to investigate and penalize individuals engaged in illicit activities within the FX market.
Cardoso reaffirmed the apex bank’s commitment to preventing such infractions, asserting that measures would be implemented to safeguard the market from manipulation, ensuring optimal outcomes for all Nigerians.
