The Nigerian House of Representatives Committee on Financial Crimes has escalated its scrutiny of cryptocurrency exchange Binance, summoning CEO Richard Teng to appear before them. This summons comes amidst growing suspicions of terrorism financing and money laundering linked to the platform.

Chair of the committee, Ginger Onwusibe, has issued a stern ultimatum to Binance management, setting a deadline of March 4, 2024, for Teng's appearance. The move follows concerns raised by the Central Bank of Nigeria (CBN) about alleged "suspicious flows" of funds through Binance in 2023.

Onwusibe warned that failure to comply with the summons would result in the committee exercising its constitutional authority to take necessary actions. This isn't the first time Teng has been called upon; a previous invitation dated December 12, 2023, was ignored.

Expressing disappointment at Teng's absence despite multiple invitations, Onwusibe stressed the importance of adherence to Nigerian laws governing financial operations. The committee reiterates its commitment to combating financial crimes, particularly those involving foreign entities.

In a related development, the National Security Adviser's office has reportedly detained two senior Binance officials in Abuja. This action underscores the government's crackdown on cryptocurrency exchanges amid concerns about the stability of the Nigerian naira.

Binance's decision to remove the naira from its peer-to-peer (P2P) service on February 28 further intensified regulatory scrutiny. The P2P feature, popularized in Nigeria in 2021, faced challenges after the government banned the crypto industry. However, the CBN lifted the ban in December 2023, issuing guidelines for regulating virtual asset service providers.

Nigeria, having launched a central bank digital currency in 2022, continues to navigate the evolving landscape of digital finance. The recent launch of the naira-pegged cNGN stablecoin by the Africa Stablecoin Consortium signals ongoing innovation within the Nigerian financial sector.