One of the biggest crypto exchange companies in the world, Binance Holdings LTD., blocked the personal accounts of a few Nigerian users on the basis of security concerns, that is, suspicion of money laundering issues.
“Protection mechanisms such as know your customer, anti-money laundering measures, collaboration with law enforcement, and account restrictions are in place to ensure our community remains protected,’ the crypto exchange said in a statement on its website. “Some 281 Nigerian accounts have been affected by these personal account restrictions, with approximately 38% of these cases restricted at the request of international law enforcement,” it said.
Many Nigerians trading on the Binance platform complained recently of the inability to initiate or complete transactions. Users from the West African nation have faced challenges trading crypto since the Central Bank of Nigeria last year asked lenders not to transact with cryptocurrency exchanges and ordered digital currency traders to shut down accounts.
Notwithstanding, Nigerians continue to use virtual currencies to hedge against inflation and naira slide, as well as to remit money. Individuals in the country hold the world’s highest proportion of such assets per capita, according to a survey by Statista.
Till now, Binance has solved 79 account restriction cases and aims to provide more customer care services and risk agents to quicken the problem-solving procedures. Hence, this results in the strong enforcement of the security of the platform for its traders.
