• The Governor of the Central Bank of Nigeria has stated that in 2023, Binance will be a conduit for billions of dollars’ worth of crypto coming from unidentified sources.
  • The West African nation faces a crisis of foreign exchange and is seeking ways to limit capital outflows.

Olayemi Cardso, the governor of Nigeria’s central banking institution, said that, last year, 26 billion dollars worth of untraceable money flowed through Binance Nigeria. This was according to local media.

West African nation faces foreign exchange crisis. It is trying to find ways to curb outflows. The naira currency , hit record lows on Wednesday . In addition to measures like imposing taxes on expat workers and renewed calls to limit crypto in the country, reports emerged that user access to some crypto exchanges, including Binance, was blocked locally.

Nigeria has always been a rapid adopter of cryptocurrency despite local efforts to restrict its use.

“We are worried that certain practices take place that suggest illicit flows through some of these entities, or suspicious flows at the very least. Cardoso stated that in the case of Binance alone, 26 billion dollars have passed through Binance Nigeria over the past year from users and sources we are unable to identify.

The country’s securities regulator warned last year that Binance, and an entity named Binance Nigeria Limited, were engaging in illegal activities.

As local news outlet Nairametrics has reported, the CBN is working closely with government agencies and police to further investigate these fund flow.

CoinDesk reached out to Binance and asked for a response.

Parikshit Miishra is the editor.