Central Bank of Nigeria (CBN) has told the Federal High Court of Nigeria in Abuja, that Binance, crypto exchange performed banking services without proper authorization.

Olubukola Akinwunmi, head of payment policy and regulation at the CBN, testified before Justice Emeka Nwite of the Federal High Court of Nigeria, asserting that Binance’s deposit and withdrawal transactions should be reserved for banks and authorized financial institutions.

The federal government has accused Binance and Tigran Gambaryan and Nadeem Anjarwalla, its executives of conspiring to obscure the origins of $35.4 million in financial proceeds from illegal activities in Nigeria.

During the trial, Akinwunmi, led by Ekele Iheanacho, counsel for the Economic and Financial Crimes Commission (EFCC), stated that Binance’s website misled Nigerians into using its platform for naira transactions via a cash link.

The platform promoted fee-free deposits and flat-fee withdrawals, activities regulated by the CBN and reserved for licensed banks and financial institutions.

Akinwunmi claimed that Binance also facilitated currency conversion from naira to United States dollars, which requires CBN authorization as an authorized dealer or a Bureau de Change (BDC).

He highlighted that traders on Binance often use pseudonyms, contravening laws requiring the disclosure of true identities in financial transactions.

The witness detailed the peer-to-peer transaction process on Binance, where the buying party transfers naira to the selling party’s bank account and confirms the transaction on the platform, prompting Binance to release the cryptocurrency or fiat currency.

Akinwunmi argued that the service is a regulated activity that Binance was not authorized to perform.

After Akinwunmi’s testimony, the court adjourned until July 16 for the defense’s cross-examination. Nwite also ordered the Nigerian Correctional Services to produce Tigran Gambaryan’s medical reports, warning of consequences for noncompliance.

This crackdown on cryptocurrency activities follows the National Security Adviser’s classification of cryptocurrency trading as a national security issue.

The CBN directed fintech startups Opay, Moniepoint, Paga and Palmpay to block and report accounts engaging in cryptocurrency transactions.

Securities and Exchange Commission (SEC) has alerted remembers of the public on some fake social media accounts purporting to be those of Dr. Emomotimi Agama, its director general.

According to the Commission, “the SEC has become aware of several fraud attempts targeting the investing public and our online community.

“These scammers are impersonating the Director General of the Commission – Dr. Emomotimi Agama with the aim of luring unsuspecting members of the public into sharing personal information and making unauthorized payments”.

The SEC therefore informs members of the public that neither the Director General nor any staff of the Commission Would request for personal information about their investments through private phone lines, emails or social media handles.

“Official information from the Commission is communicated ONLY through its verified email addresses, website, social media handles, and phone numbers.

“Always verify the identity of the person or entity contacting you. If unsure, do not hesitate to immediately contact us directly through [[email protected]] or call [+234 02094621168]” the Commission stated.

The Commission restated its committed to the protection of investors in the Nigerian Capital Market adding that it is working diligently to curb scams and other fraudulent activities.

The NetplusDotCom, which is licenced by the Central Bank of Nigeria (CBN) as a Payment Service Provider (PSP), is collaborating with Zenith Bank, FCMB, Wema Bank, First Bank of Nigeria and Providus Bank, to promote contactless payment in Nigeria.

Contactless payment is enabled by SoftPOS technology that converts mobile phones into POS devices.

Participants at a forum with the theme “Accelerating Contactless Payment: A Collaborative Approach to Overcoming Barriers,” which was organised by NetplusDotCom, identified the low penetration of identified the low penetration of Near Field Communication (NFC) as major hindrance to utilisation of contactless payment in Nigeria.

Mr. Wole Faroun, Founder/Managing Director of NetplusDotCom, explained that “the essence of this forum is to bring industry stakeholders together to talk about our payment system and evolution of contactless payments.

“At NetplusDotCom we have been at the forefront of providing SoftPOS for the last two years. This is a technology that converts your mobile phone into a POS device. But we know that there is still a need for adoption and education and there are barriers stalling the adoption of this technology.”

He added: “All the stakeholders agree that this is the technology that has come to stay. They also agree that there are some barriers to adoption in the market.

We are forming a semi-industry group that has a number of banks in it. And we are going to steer that committee or group to come up with strategies to combat some of those barriers that we have.”

Mr. Kayode Sangoleye, group Head of e-business, Providus Bank, said that Providus SoftPOS was launched in 2023 in partnership with Mastercard.

Also, the Divisional Head of Payment and Solutions, FCMB, Mr. Frank Atat, noted that most Nigerians do not own NFC-enabled phones because it is expensive.

However, the Vice Chairman, Committee of e-Business Industry Heads, Ajibade Laolu-Adewale, said that the challenges facing NFC’s adoption in Nigeria could be overcome through partnerships among government, industry, academia and civil society.