Binance Neutralizes Hundreds of Nigerian Trading Accounts

Excess of zeal or justified measures? A January 21, 2022 Reuters article accuses Binance of not only withholding information from regulators, but of being accommodating in monitoring customer identities and transactions. The stock exchange has just proved the opposite by taking strict measures against the accounts of its Nigerian clients.

Suspension of Binance Nigerian Accounts: The Security Argument

Changpeng Zhao signed a letter dated January 29, 2022 posted on his blog, addressed specifically to Nigerian clients of the cryptocurrency exchange. CZ emphasizes the importance of “user security” which remains the “top priority” of the exchange.

Changpeng Zhao recalls the existence and implementation of global systems for protecting users and combating fraudulent activities :

“KYC, Anti-Money Laundering Measures, Working with Law Enforcement and Account Restrictions”

This introduction aims above all to announce and justify bad news for Nigerian users: “ Some 281 Nigerian accounts suffered “restrictions of personal accounts, approximately 38% of which were at the request of international law enforcement agencies.”

Binance reported resolution of “non-law enforcement cases” within two weeks. 79 cases have already been resolved according to CZ.

Regarding the case of Nigeria, Binance also plans to “deploy more” agents dedicated to customer support and risk management, staff who have “extensive knowledge of the Nigerian market”.

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Permanent closure of accounts: blocked funds from Nigerian customers

This letter from Changpeng Zhao was published after Nigerian tweeters attacked Binance on social networksthe hashtag #BinanceStopScamming has even become a trending topic within the community.

CZ’s slick talk about these account suspensions will certainly not assuage the anger of users like @JoshuaNwogodo who has share on Twitter, an image of what would seem – the conditional is always appropriate – be an exchange with Binance customer support.

Do users of the Binance digital currency exchange platform really have to say goodbye to their cryptocurrencies?
Posted by @JoshuaNwogodo – Source: Twitter

The latter would have informed him of a permanent account suspensiona final decision on which the stock market would therefore not reconsider. The funds would also be blocked.

Are customers’ cryptocurrency investments on Binance now more secure following the suspension of these accounts, a practice that contrasts with the famous decentralization of new finance? Nigeria’s central bank is notorious for its hostility towards bitcoin (BTC) and its cadets, the organization has gone so far as to demand the closure of the bank accounts of three alleged cryptocurrency traders. Has the war between crypto exchange platforms like Binance and the institution just claimed new victims again?

Too much security is better than not enough? Binance proves by deeds that it does not take security and compliance lightly, some will appreciate it and some will not. If you want to invest in cryptocurrencies on the industry benchmark platform, register on the Binance platform (affiliate link).

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