Binance users in Nigeria conduct transactions using pseudonyms, according to a CBN representative testimony
Nigeria's ongoing legal battle with Binance, one of the world's leading cryptocurrency exchanges, has taken a stalled and delayed course, as multiple major cases — including tax evasion, money laundering, and a massive $81 billion economic distortion claim — face procedural hurdles and court postponements.
According to a report by Mariblock, the timeline of events related to this story reveals that the trial against Binance and its executive, Tigran Gambaryan, involves money laundering charges involving $35.4 million. Binance, however, does not hold a license to operate in Nigeria, as stated by Olubukola Akinwumi, a deputy director at the Central Bank of Nigeria (CBN).
Nigerian authorities accuse Binance of operating without a license, facilitating illicit fund flows, and destabilizing Nigeria's currency. However, enforcement progress has been slow and erratic. In contrast, South Africa's approach to crypto regulation is more measured and positive.
South African authorities have generally not pursued aggressive litigation against crypto exchanges like Binance. Instead, they focus on creating clear regulatory guidelines for crypto activities, emphasizing consumer protection, compliance with anti-money laundering laws, and integrating crypto assets within existing financial laws.
The Financial Sector Conduct Authority (FSCA) in South Africa has granted 63 additional licenses to crypto firms, bringing the total number of licenses to 138. This proactive approach is attracting investments to South Africa, as highlighted by FSCA boss, Unathi Kamlana, in a lecture on the importance of striking a balance between innovation and regulation.
Meanwhile, Nigeria's heavy-handed approach to cryptocurrency regulation is eroding trust in Nigeria's crypto market. Some of the most gifted builders in the crypto space have shifted their focus away from Nigeria, opting for more stable markets.
Akinwumi, who heads the Payment Policy and Regulation Division in the CBN's Payments System Management Department, testified before Justice Emeka Nwite of the Federal High Court in Abuja on July 5. He described how Binance's peer-to-peer platform operates, with Nigerian users often using pseudonyms to hide their identities when trading on the platform.
Services related to the withdrawal and deposit of Nigerian Naira are regulated activities carried out by banks and other financial institutions registered by the CBN, according to Akinwumi. This regulatory environment will continue to push crypto innovations and investments to more stable markets.
Despite the ongoing legal battles, it appears that Nigeria is beginning to shift towards a more structured regulatory framework embracing compliant stablecoin ventures, signaling a possible softening after the harsh Binance crackdown of 2024. This regulatory pivot could help rebuild trust in Nigeria's crypto market and attract investments back to the country.
References: [1] Mariblock (2025). Nigeria vs. Binance timeline of events. [online] Available at: https://mariblock.com/nigeria-vs-binance-timeline-of-events/ [2] Channels Television (2025). Binance tax evasion trial delayed to October 2025. [online] Available at: https://www.channelstv.com/2025/05/15/binance-tax-evasion-trial-delayed-to-october-2025/ [3] Financial Sector Conduct Authority (2025). FSCA grants 63 additional crypto licenses. [online] Available at: https://www.fsca.co.za/media-centre/news/fsca-grants-63-additional-crypto-licenses [4] The Guardian (2025). Nigeria's legal battle with Binance stalled and delayed. [online] Available at: https://www.theguardian.com/business/2025/jul/05/nigerias-legal-battle-with-binance-stalled-and-delayed [5] BusinessDay (2025). Nigeria's regulatory pivot to support stablecoins. [online] Available at: https://www.businessdayonline.com/technology/article/nigerias-regulatory-pivot-to-support-stablecoins/
- The ongoing legal battle with Binance, a leading cryptocurrency exchange, in Nigeria has progressed slowly due to procedural hurdles and court postponements, as they face charges like money laundering and tax evasion, involving millions of dollars.
- Unlike Nigeria, South African authorities maintain a more measured and positive approach to crypto regulation, focusing on creating clear guidelines, consumer protection, and integrating crypto assets within existing financial laws.
- The Financial Sector Conduct Authority (FSCA) in South Africa has granted 63 additional licenses to crypto firms, bringing the total number of licenses to 138, attracting investments to the country.
- Akinwumi, from the Central Bank of Nigeria, testified that Binance's peer-to-peer platform operates with users often using pseudonyms for trades, and that services related to the withdrawal and deposit of Nigerian Naira are regulated activities.
- The heavy-handed approach to cryptocurrency regulation in Nigeria is causing a decline in trust in the local crypto market, as gifted builders in the crypto space move towards more stable markets.
- As Nigeria begins to shift towards a more structured regulatory framework, there's a possibility of softening after the harsh Binance crackdown, which could help rebuild trust in Nigeria's crypto market and attract investments back.
- The reference by BusinessDay suggests that Nigeria is moving towards supporting compliant stablecoin ventures, indicating a potential regulatory pivot in the future.
