Binance, cryptocurrency exchange by volume, has restored the operation of 79 out of the 281 Nigerian personal accounts under probe for regulatory breaches.
The company had restricted the accounts to ensure the platform’s security and prevent fraud, Changpeng Zhao, founder and CEO has said.
He said about 38 per cent of the accounts were restricted at the request of international law enforcement.
“User security remains our top priority. We love and are devoted to our Nigerian community, but we must ensure that our users are safe,” he added.
Zhao’s statement comes after users complained that they had lost access to their accounts and funds without any reason. Using the hashtags such as #BinanceStopScamming, #BinanceStealingCrypto, they called for a boycott of the exchange. Many expressed frustration that it allegedly failed to get customer care support from Binance.
Zhao said: “Binance has resolved 79 cases connected to account restrictions and will work towards speedy resolution of such cases.”
Despite the government barring banks and other institutions from dealing in cryptocurrencies last year, the digital currencies are still popular in the country.
Central Bank of Nigeria (CBN) had last February directed Deposit Money Banks (DMBs), Other Financial Institutions (OFIs) and Non-Bank Financial Institutions (NBFIs) local financial institutions to close accounts belonging to crypto currency operators.
Cryptocurrency traders in January met with Securities and Exchange Commission (SEC) on how to regulate their operations.
The restrictions meant that traders cannot process withdrawals and deposits using the platforms anymore, or through third party platform like Paystack or Flutterwave.
The operators also requested that the CBN and other regulatory bodies can regulate cryptocurrency exchanges with existing laws and licences.
They expect the apex bank to add legal certifications for exchanges—for example, registration under the Special Control Unit on Money Laundering (SCUML).
