January 31, 2022

Binance explained the blocking of users from Nigeria

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Binance explained the blocking of users from Nigeria

Bitcoin exchange Binance has blocked 281 accounts of traders from Nigeria to prevent money laundering and ensure the safety of the platform, said Changpeng Zhao, head of the company.

He said that 38% of the restrictions were imposed at the request of international law enforcement agencies.

Earlier, a division of Binance Africa in response to complaints from users published a form that was offered to fill in the owners of blocked accounts to clarify the situation. The company assured that it did not impose restrictions without reason.

Protection mechanisms such as KYC, anti-money laundering measures, cooperation with law enforcement and account restrictions protect our community and prevent fraudulent activity. It's a global approach applied in every country, Zhao stressed.

He acknowledged delays in handling user requests by the help desk. The exchange has issued positive decisions in 79 cases, he said. All cases not related to law enforcement inquiries will be resolved within two weeks, Zhao assured.

To this end, he promised to allocate more personnel versed in the Nigerian market.

In February 2021, Nigeria's central bank banned commercial financial institutions from providing services to cryptocurrency exchanges and digital asset companies.

The regulator assured that the restrictions do not apply to individuals, but in November, it instructed to close all accounts related to digital asset trading.

Jack Evans

About the author

I became a crypto asset owner in 2014, when the industry was in its infancy. Before that, I was working in the classic US and European stock markets. Since then, I have gained extensive experience in both cryptocurrency investing and day trading. I am happy to share with readers my experience with crypto exchanges, DeFi and NFT instruments. 

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