Binance, the world’s largest cryptocurrency exchange, has restricted the accounts of 281 Nigerian customers.
Changpeng Zhao, Binance’s CEO, cited the necessity to comply with international money laundering regulations in order to safeguard the security of the platform for traders.
In a letter to Nigerian customers dated January 29, 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.
“To guarantee our community is secured, protection methods such as know your customer, anti-money laundering measures, coordination with law authorities, and account limits are in place,” the crypto exchange stated in a statement on its website.
“These personal account limitations have impacted 281 Nigerian accounts, with about 38 per cent of these cases prohibited at the request of international law enforcement,” it stated.
“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 said.
Digital Times understands that although the central bank of Nigeria has prohibited the use of cryptocurrency, Nigerians have continued to use it for business, to preserve their savings as the naira’s value has declined, and to transfer payments internationally as it is often difficult to obtain US dollars in the country.
There have also been complaints from a number of Nigerians transacting on the Binance platform about difficulties initiating or concluding trades.
