In response to complaints from Binance users in Nigeria who have been affected by the platform restricting accounts, the Binance CEO, Changpeng Zhao (CZ), has come out to give an explanation.
The statement by CZ comes after significant criticism in the Nigerian crypto space where the hashtag ‘BinanceStopScamming‘ was a trending topic for a couple of days.
In a blog post published on Binance, Zhao has insisted that the account restrictions that have been reported in the last week are part of measures to ensure that users on the platform are protected and that fraud is prevented.
CZ said:
“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.”
– CEO, Binance
Zhao also noted that the security measures are part of a global approach which is another way of saying that Nigerians are not being targeted.
According to shared data, 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.
Binance faced regulatory scrutiny from countries around the world in 2021 with authorities concerned about the platform’s potential use by fraudsters and criminals.
Some of the countries that have been particularly harsh on Binance over-regulation are as follows:
- South Africa
- Singapore
- Hong Kong
- United Kingdom
However, not just in these countries alone but in most jurisdictions, authorities are tightening regulations on crypto exchanges, particularly AML/CFT.
Despite seemingly impacting the organization’s business operations across the world, CZ agrees with scrutiny saying that ‘people need to put their hard-earned money in a place they can trust.’
The world’s most popular exchange has added that it is improving the process by which it resolves the issues with the accounts that are restricted and has also committed to expanding its customer support presence for the ‘special’ Nigerian market.
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