By Trend News Line 2024-03-19 09:10:47.
EFCC Secures Court Order Against Binance Holdings Limited
In a recent development, the Federal High Court in Abuja has issued a compelling order to Binance Holdings Limited, a popular online exchange for cryptocurrency transactions. The order requires Binance to provide the Economic and Financial Crimes Commission (EFCC) with comprehensive data regarding Nigerian traders using its platform. This decision comes as a result of an ex parte motion filed by the EFCC, seeking information on Nigerians engaged in trading activities on Binance.
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EFCC’s Allegations and Court Ruling
The suit, identified as FHC/ABJ/CS/259/2024 and dated February 29, was initiated under various sections of the Economic and Financial Crimes Establishment Act, 2004, and the Money Laundering (Prevention and Prohibition) Act, 2022. According to an affidavit submitted by EFCC operative Hamma Bello, the Commission’s Special Investigation Team received intelligence suggesting illicit activities such as money laundering and terrorism financing through Binance. Bello highlighted instances of market manipulation causing disruptions in currency valuations, particularly affecting the Nigerian naira. The court, in a ruling dated February 29, granted the EFCC’s interim request, directing Binance to provide comprehensive information on all Nigerian traders using its platform.
Binance’s Regulatory Scrutiny in Nigeria
Binance, known for facilitating cryptocurrency transactions, has faced regulatory scrutiny in Nigeria due to concerns over the lack of oversight and potential misuse of the platform for illicit financial activities. The EFCC’s move to compel Binance to provide data on Nigerian traders reflects a broader effort to combat financial crimes and safeguard the local financial landscape. Data obtained from Binance indicated a trading volume of $21.6 billion from Nigeria in 2023, underscoring the platform’s significant impact on the country’s economy.
Implications for Binance and Nigerian Traders
The court’s order has significant implications for both Binance and Nigerian traders using the platform. Binance will now be required to furnish the EFCC with detailed information on Nigerian users, potentially leading to increased scrutiny and regulatory oversight. For Nigerian traders, the move signals a shift towards greater transparency and accountability in the cryptocurrency trading space. It remains to be seen how Binance will respond to the court’s order and the impact it will have on its operations in Nigeria.
Conclusion
As the EFCC continues its efforts to combat financial crimes and money laundering, the court’s decision to compel Binance to provide data on Nigerian traders marks a significant step towards enhancing regulatory oversight in the cryptocurrency industry. The outcome of this case will likely have far-reaching implications for both Binance and Nigerian traders, shaping the future of cryptocurrency trading in the country..
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Court Orders Binance to Disclose Nigerian Traders’ Information To EFCC
Binance Disclose Nigerian Traders’ Information To EFCC.
