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  • Writer's picturemeowdini
    • Jul 8
    • 2 min read

Nigerian Central Bank Accuses Binance of Unauthorized Transactions

The Nigerian Central Bank accuses Binance of conducting unauthorized transactions, highlighting the lack of necessary licenses and regulatory approval.

The Central Bank of Nigeria (CBN) has accused the crypto exchange Binance of performing banking services without proper authorization. The allegations were presented in court, claiming that Binance's operations in Nigeria violated local financial regulations.


A judge's gavel on a wooden block, representing the court case involving Binance's alleged unauthorized financial activities in Nigeria.
A judge's gavel, symbolizing the legal proceedings against Binance for unauthorized transactions in Nigeria.

Key Points:


Allegations by the CBN:

  • The CBN alleges that Binance conducted deposit and withdrawal transactions without authorization.

  • Testimony was given by Olubukola Akinwunmi, head of payment policy and regulation at the CBN.


Unlicensed Currency Conversion:

  • Binance is accused of facilitating currency conversion from naira to USD without CBN authorization.

  • Such transactions are reserved for licensed banks and financial institutions.


Unauthorized Peer-to-Peer (P2P) Transactions:

  • Binance's P2P transaction process was detailed in court, showing how naira is transferred between parties without proper regulation.

  • The CBN argues that this service is regulated and Binance was not authorized to perform it.


Legal and Regulatory Actions:

  • The court has adjourned until July 16 for the defense’s cross-examination.

  • The Nigerian Correctional Services were ordered to produce medical reports for Binance executive Tigran Gambaryan.


Government Crackdown:


  • The crackdown on Binance follows the National Security Adviser’s classification of cryptocurrency trading as a national security issue.

  • Other fintech startups were directed to block and report accounts engaging in cryptocurrency transactions.


Binance’s Response:


  • In February, Binance disabled its P2P feature for Nigerian users due to government scrutiny.

  • The SEC called for measures to delist the naira from P2P platforms to protect the integrity of Nigeria’s capital market.



The allegations against Binance by the Central Bank of Nigeria underscore the ongoing regulatory challenges faced by cryptocurrency exchanges operating in the country. The case highlights the need for clear regulatory frameworks to govern digital asset transactions and ensure compliance with financial laws.


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