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The Central Bank of Nigeria (CBN) has issued a new directive requiring all banks and financial institutions in the country to identify individuals or entities engaging in transactions with cryptocurrency exchanges.

The circular also requires the bank to place their accounts under a Post No Debit (PND) instruction for a period of six months.

Key points:

A PND instruction is a directive issued by a bank or financial institution that restricts certain transactions on a customers account. A PND instruction prohibits the account holder from making debit transactions.

Also read: Binance Founder Changpeng Zhao Should Face 3-Year Prison Sentence: DOJ

The CBNs decision to target unlicensed crypto exchanges comes as a surprise. This is because the bank lifted a comprehensive ban on banks engaging with digital currencies in December 2023.

The recent devaluation of the naira and the subsequent inflation rate of 29.9% appear to have prompted the government to shift its attention to platforms offering cryptocurrency services. The CBN has even blocked websites associated with crypto trading.

Also checkout:Crypto Industry Groups Sue SEC Over Expanded Dealer Definition

Binance is also facing ongoing scrutiny from the Nigerian government. The CBNs latest directive has raised questions about the future of cryptocurrency in Nigeria.

Vignesh Karunanidhi

Vignesh has been a seasoned professional in the crypto space since 2017. He has been writing for over 6 years and specializes in writing and editing various types of crypto content, including news articles, long-form pieces, and blog posts, all focused on sharing the beauty of blockchain and crypto.

Milk Road Writer

Vignesh has been a seasoned professional in the crypto space since 2017. He has been writing for over 6 years and specializes in writing and editing various types of crypto content, including news articles, long-form pieces, and blog posts, all focused on sharing the beauty of blockchain and crypto.

Original post:

Central Bank of Nigeria To Freeze Bank Accounts Linked With Binance, Bybit, KuCoin - Milk Road

Binance burned 1.94 million Binance Coin tokens, removing them from circulation.

The cryptocurrency exchange Binance announced the completion of its 27th quarterly Binance Coin (BNB) token burn, removing $1.17 billion worth of coins from circulation. The volume of BNB destroyed was approximately 1.3% of the total supply of the asset.

However, this time, the procedure did not include burning tokens as part of the Pioneer Burn program.

The BNB tokens price failed to react to the news about the burning of tokens. According to CoinMarketCap, in 24 hours, the token lost 0.9% from its previous value, falling to $600 at the time of writing.

Over the past week, the tokens price rose by 13% despite recent news about the U.S. seeking to impose a three-year jail sentence onBinancefounder Changpeng Zhao.

BNBsmarket capitalization dropped by 2.2% to $88 billion, while trading volumes increased slightly by 1.4%.

Before this, Binance removed approximately 2.14 million BNB worth $636 million from circulation in January. The volume of BNB destroyed was approximately 1.38% of the total supply of the asset.

During the launch of BNB in 2017, a commitment was made to destroy 100 million coins half of the coins entire supply through burning. The offer is automatically executed every quarter and calculated using the auto-burn formula.

Binance representatives explained that this provides atransparent, auditable, and objective processindependent of the centralized exchange. In addition, BNB Chain continuously burns a portion of the gas fees on the blockchain in real-time.

Excerpt from:

Binance burns over $1.17b in BNB tokens - crypto.news

Update 11:45 am UTC: The central bank is denying they have issued a directive.

The Central Bank of Nigeria (CBN) has been forced to deny a report saying it issueda directive requiring all banks and financial institutions to identify individuals or entities engaging in transactions with cryptocurrency exchanges and to ensure that such accounts are put on Post No Debit (PND) instruction for six months.

A Post No Debit instruction is a directive issued by a bank or financial institution to restrict certain transactions on a customers account. When a PND instruction is in place, the account holder is prohibited from making debit transactions, meaning they cannot withdraw funds or make payments using the affected account.

Confusion occurred when the central bank denied the story on X but then deleted the denial. Some hours later they claimed the allegations were indeed false.

The bank said it would catch anyone it believes is buying and selling Tether (USDT) on the listed platforms illegally, especially those using peer-to-peer (P2P) methods.

The alleged circular also stated that regulated financial institutions engaged in crypto or facilitating payments for crypto exchanges are prohibited. However, this contradicts an earlier ban lifted in December 2023,allowing banks to facilitate transactionsfor crypto exchanges.

The central bank lifted the ban nearly two years after enforcing a comprehensive ban on banks engaging with digital currencies.

According to a statement by the CBN at the time, it recognized that the increasing global demand and adoption of crypto make it unjustifiable to maintain the stringent restrictions imposed on financial institutions in 2021.

Related: Binance exec will remain in Nigerian custody until May 17 bail hearing: Report

However, due to the swift devaluation of the naira and the subsequent inflation rate of 29.9%, the government shifted its attention to platforms offering cryptocurrency services. It disabled websites associated with crypto trading that had gained notoriety for setting informal valuations for the naira.

Binance encountered significant scrutiny when the CBN raised concerns regarding suspicious financial transactions occurring through Binance Nigeria in 2023.

CBN head Olayemi Cardoso said $26 billion had passed through Nigeria via Binance in 2023 from unidentified sources and users.

Binance is facing further challenges in Nigeria, with its executive Tigran Gambaryan, who is based in the United States, being detained in the country. Hes facingfive charges linked to money laundering following a meeting with Nigerian officials regarding Binances regulatory compliance.

Nadeem Anjarwalla, one of the executives who met with Nigerian officials about Binances regulatory issues, subsequently escaped custody and was tracked down to Kenya, where he faces extradition.

Magazine: Less flashy Mashinsky set for less jail time than SBF: Inner City Press, X Hall of Flame

Link:

Nigeria's central bank forced to deny claims of crypto account freeze - Cointelegraph

A recent recommendation by the U.S. Department of Justice [DOJ] for Changpeng Zhao, the founder of Binance has caused uproar in the market. CZ pleaded guilty to violating the Bank Secrecy Act last November. This further prompted his resignation as Binances chief executive. The exchange also admitted to the violations which resulted in a substantial penalty of $4.32 billion. Now, as Zhao faces sentencing on April 30, the DOJ was seen pushing for 36 months in prison alongside a $50 million fine.

JUST IN: US Government seeks 3 year prison sentence for ex-#Binance CEO Changpeng Zhao (CZ).

The severity of the recommended sentence is notable for several reasons. One of them is that federal sentencing guidelines typically cap the maximum prison term at 18 months for violations of this degree. However, the DOJ argues that Zhaos misconduct was not only willful but also had a wide range of ramifications. The latest filing read,

The sentence in this case will not just send a message to Zhao but also to the world. Zhao reaped vast rewards for his violation of U.S. law, and the price of that violation must be significant to effectively punish Zhao for his criminal acts and to deter others who are tempted to build fortunes and business empires by breaking U.S. law.

Also Read: Philippines SEC Orders Apple & Google To Remove Binance

While the DOJ puts forth the magnitude of Zhaos violations, several critics of the regulator have been highlighting CZs contributions to the industry. Binance, for instance, emerged as one of the largest and most influential exchanges across the globe. This was under CZs leadership.

In addition to his potential situation, Zhaos personal circumstances add complexity to the whole scenario. This includes his inability to return to Dubai where his family resides. The postponement of his sentencing hearing from late February to April 30 further prolongs the uncertainty around his fate.

Just last week, Binances co-founder He Yi instilled hope in the market by suggesting that CZs situation in the U.S. is perceived to be relatively stable. However, the looming prospect of a lengthy sentence casts a shadow over Binance and the entire cryptocurrency market.

Also Read: Binance $1 Billion Emergency Fund Converted to USDC

Go here to see the original:

Binance: DOJ Recommends 3-Year Sentence for CZ's Violations - Watcher Guru

A new Canadian class action againstBinanceaccuses the company of selling digital asset derivative products to retail investors without registrationand revealsthat the company is still under investigation by the Ontario SecuritiesCommission,despite having announced its departure from the country in May 2023.

A class action lawsuit filed last week with the Superior Court of Justice in Ontario, Canada, accused Binance of violating localsecurities lawsby sellingdigital assetderivative products to retail investors without registration.

According to the April 19certification motion, the plaintiffs, represented by Christopher Lochan and Jeremy Leeder, allege Binance violated the Ontario Securities Act (OSA) and federal law by selling digital asset derivatives products, with the lawsuit seeking damages and rescission of unlawful derivatives trades.

The plaintiffs claim to represent tens of thousands of Canadian users of the Binance website who invested in cryptocurrency products and who claim that those productswere soldby the Defendants illegally.

The filing also noted that cryptocurrency derivatives traders include a great many retail investors, adding that more than 50% of Canadian digital asset owners have at least $5,000 in the market, according to the Ontario Securities Commission (OSC).

This latest class action against Binance comes a couple of years after the exchange announced plans to cease operations in Ontario. The move followed a March 2021warningissued by the OSC to digital asset platforms trading in derivatives or securities, whichstated they must bring their operations into compliance with Ontario securities law or face potential regulatory action.

Binance decided not to bring its operations into compliance, instead withdrawing from the jurisdiction, so in December2021the OSC published another release notifying investors, Binanceis not registeredunder securities law in Ontario.Thismeans they are not authorized to offer trading in derivatives or securities to persons or companieslocatedin the province.

However, last weeks court document suggests that, despite failing to register and announcing its withdrawal, Binance did not cease its derivative trading:

As a result ofits failure to adhere to this announced cessation of sales, in early 2022, the OSC notified the defendants of its intention to seek a cease trade order.

Perhaps sensing its jig was up in Canada, on May 12 last year, Binanceconfirmedit would be exiting the country amid increased regulatory requirements introduced by the Canadian Securities Administrators (CSA), the umbrella organization for the countrys securities regulators.

The company cited new guidance related to stablecoins and investor limits, which made the Canadian market no longer tenable for Binance at this time.

Unfortunately, evenitannounced its departure from Canada, local authorities continued to pursue the exchange, with the latest court motion confirming that the OSCs investigation into the Defendants is ongoing.

Bad week for Binance PR department

Binances recent woesare not restrictedto Canada. Putting to one side that the companys founder and former CEOChangpeng CZ Zhaois currentlyawaiting sentencingin the United States afterpleading guiltylast November to violating the Bank Secrecy Act, and causing a financial institution to do likewise, the company continues to create negative headlines around the globe on an almost weekly basis.

On Monday, the Kenya Police Service arrested another criminally charged Binance executive, Nadeem Anjarwalla, who decided to go on the run rather than face his punishment.

Anjarwalla was initiallydetained in Nigeriaalongside another Binance executive, Tigran Gambaryan, in February, as Nigerian authorities accused the exchange of manipulating the local exchange rate, tax evasionandmoney laundering. A British-Kenyan dual national, Anjarwallareportedlyfled the country in March using a Kenyan passport.

After his alleged capture on Sunday evening, Interpol will extradite Anjarwalla from Kenya to Nigeria within the week, according to areportfrom Nigerian news outlet Punch, citing sources familiar with the case.

Only a day after the reported arrest of the fleeing executive, Binances week went from bad to worse as its international PR house fire spread to the Philippines.

On April 23, the Securities and Exchange Commission (SEC) of the Philippinesannounced that it was working with Google (NASDAQ: GOOGL) and Apple (NASDAQ: AAPL) on the removal of applications operated by Binance in app marketplaces accessible in the Philippines.

In separate letters addressed to Google and Apple, the SECrequestedthe removal of applications controlled by Binance.com fromGooglePlay Store and the Apple App Store, respectively.

The SEC has identified [Binance] and concluded that the publics continued access to these websites/apps poses a threat to the security of the funds of investing Filipinos, SEC Chairperson Emilio B. Aquino said in the letter.

The letter also accused the exchange of the sale or offer of unregistered securities to Filipinos and operating as an unregistered broker, constituting a violation of Republic Act no.8799, the Securities Regulation Code (SRC).

Binance has not secured from the SEC a license to solicit investments from the public, nor to create or operate an exchange for the buying and selling of securities, as required by SRC, the SEC said.

The regulator hopes thatthe removal ofthe Binance app from leading app stores will prevent the further proliferation of its illegal activities in the country and protect the investing public from its detrimental effects on our economy, Aquino said.

As well as warning the public against investing in and using the exchange, Tuesdays SEC announcement noted that the regulator had been studying the possible blocking of Binances website and other online presence in the Philippines, as early as November 2023.

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Binance kicks off embarrassing week with class action lawsuit in Canada - CoinGeek