Olubukola Akinwummi, a senior official of the Central Bank of Nigeria on Friday told a Federal High Court sitting in Abuja that the apex Bank did not issue any licence to Binance cryptocurrency platform to operate other financial services.
Akinwummi, who is the head, payment policy and regulation division of CBN, appeared as second Prosecution Witness (PW2) in the ongoing trial of Binance Holdings Limited and its Executive Officer, Tigran Gambaryan, before Justice Emeka Nwite of the Federal High Court.
The Economic and Financial Crimes Commission (EFCC) is prosecuting Gambaryan alongside Binance Holdings Ltd on a five-count charge bordering on alleged tax evasion, currency speculation and money laundering to the tune of $34,400,000.
During examination in chief of the witness led by Ekele Iheanacho, counsel to the EFCC, the witness told the court how Binance operated other financial institutions services without authorization and licence from the CBN.
According to him, operating a Bureau de Change, payment service, mobile money, dealership for foreign exchange, electronic wallet, among others all require authorization from the CBN.
He noted that the Binance provides a trading platform where users trade virtual assets, provide a meetig place to trade between naira and cryptocurrency, and facilitate conversion from one fiat currency to the others, a service that requires authorisation by the CBN.
When Iheanacho asked if the Binanace was issued any licence by CBN, he replied in the negative.
“The CBN did not issue any licence to Binance”, he said.
“We observed that binance provides a trading platform where users trade virtual assets, and to consumate their transaction for the purpose of settlement payments. The users make use of the payment system for the purpose of transferring or making payment to one another. The Binance provides platform for traders to trade between the naira and cryptocurrency, as well as paying between one cryptocurrency and the other, They carry this activity on the peer to peer window of binanace platform. In effect, they carry out money brokerage services. They also facilitate conversion from one fiat currency to the other, for example you can convert naira to dollar. That kind of service requires authorization by the CBN, either as an authorised dealer or as a bereau de change”, he explained.
“Another Service they provide is electronic wallet for depositing naira and cryptocurrency. The wallet they have also allows Nigerians withdraw what they have deposited, like a typical bank account”, he further explained.
When asked if he was aware whether traders on Binance platform are licensed to deal in foreign exchange, the director said traders on the platform normally trade in pseudonyms, names that hide their identity and that they are not authorised by the CBN.
“Do have any proof to show the nature of activities of Binance?”, the prosecuting counsel asked. The CBN official replied in the affirmative.
He then tendered two documents marked as exhibit 8 and 9 which demonstrates the nature of activities of Binance, which the Court admitted in evidence.
One of the document is a submission made by Binance to SEC which the commission made available to the prosecuting counsel. The document is duly certified by the SEC.
The 9th exhibit are some pages which the witness generated from the official website of binanace cryptocurrency platform.
The witness was asked to demonstrate to the court the transactions, which he did.
Both Tony Kukrubo, counsel to Binance and Mark Mordi, Counsel to Tigran Gambaryan did not object to the document tendered.
They however urged the prosecuting counsel to provide clearer copies to aid cross examination of the witness.
Justice Nwite, then adjourned the matter to July 16.
Meanwhile, Justice Nwite expressed dismay that his previous order to produce the medical results of Tigran Gambaryan was treated with levity. He told an official of the prison service who was present in Court that he will not take it lightly if the order is disobeyed again.
“You are treating my order with utmost disdain, I will not take it lightly if you fail to produce at the next adjourned date, 16th July. You should not take the court for a ride. Pass this message. The medical report for the second defendant, Gambaryan must be produced and made available to the defence Counsel before on or July 16.
Mark Mordi, Counsel to the Gambaryan prayed the court to order the doctor in charge of the prison record to appear before the court if he fails to make the records available before the adjourned date, which the Judge granted.
“Failure to comply with this order on , the doctor in charge, Abraham Ehizojie shall come to court to explain the reason why they failed to comply”, Nwite said.
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