Crypto Exchange Binance Restricts 281 Nigerian Accounts — Some Requested by International Law Enforcement
Cryptocurrency exchange Binance has restricted 281 Nigerian user accounts. Citing user security and fraud prevention, CEO Changpeng Zhao explained that “approximately 38% of these cases [are] restricted at the request of...
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Cryptocurrency exchange Binance has restricted 281 Nigerian user accounts. Citing user security and fraud prevention, CEO Changpeng Zhao explained that “approximately 38% of these cases [are] restricted at the request of international law enforcement.”
Cryptocurrency exchange Binance has sent a letter to its Nigerian users. In the letter, Binance CEO Changpeng Zhao (CZ) apologized for the inconvenience caused by delays in resolving customer support requests.
Noting that “User security” remains his exchange’s top priority, Zhao detailed: “Protection mechanisms such as KYC, anti-money laundering measures, collaboration with law enforcement, and account restrictions are in place to ensure our community remains protected and that fraudulent activity is prevented. This is a global approach applied in every country.” The CEO added:
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.
Zhao proceeded to highlight what Binance is doing to rebuild trust in the Nigerian community.
Firstly, he said that Binance is “Ensuring speedy resolutions of ongoing user cases tied to account restrictions,” noting:
Currently, we have resolved 79 cases and continue to work through others. All non-law enforcement-related cases will be resolved within two weeks.
Another area that is being addressed is “Devoting more customer service personnel to the region.” Zhao stressed, “We will dedicate more CS and risk agents with a great understanding of the Nigerian market.”
Recently, some Nigerian users of Binance launched a campaign boycotting the platform for freezing their accounts. “At times, we proactively restrict accounts to protect users’ funds. Other times, we have to restrict accounts at the request of law enforcement. But never will we restrict accounts without good reason,” Binance said last week.
The cryptocurrency exchange has been facing scrutiny in a number of jurisdictions worldwide, including Pakistan, Canada, the U.S., U.K., South Africa, Australia, Norway, Netherlands, Hong Kong, Germany, Italy, India, Malaysia, Singapore, Turkey, and Lithuania.
In August, Binance said it is making regulatory compliance a top priority. The company is moving from a decentralized business model to a centralized one, as it pivots from a technology company to a financial services company.
What do you think about Binance restricting 281 Nigerian accounts? Let us know in the comments section below.
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