The Central Bank of Nigeria (CBN) has asserted that $26 billion in cryptocurrency transactions are untraceable. Obinna Iwuno, President of Stakeholders in Blockchain Technology Association of Nigeria (SiBAN), has challenged this assertion.
Concerns regarding the $26 billion that came via Binance Nigeria in the last year from “unidentified sources” had been voiced by the CBN.
Iwuno clarified that before allowing customers to trade, individuals must authenticate their identities on binance, a well-known cryptocurrency exchange.
Speaking on Channels TV on Tuesday, Iwuno maintained that rigorous KYC makes it hard to remain anonymous on centralized exchanges like Binance.
“First, we need to understand how these platforms operate. Each platform uses this KYC system,” he stated.
“You had to complete your KYC on Binance before you could even have an account to trade or engage in any other activity. This implies that everyone who has used or is now using binance is known.
The other factor is that these Binance transactions are not anonymous because they are made on the blockchain. In other words, your private information and transactions are not accessible to the public, but law enforcement and government agencies can obtain them from Binance upon request.
There are several instances of fraud and scams involving the EFCC, Interpol, and other foreign police agencies. When money pours into Binance, the owner’s identity is made public.
“I don’t mean to criticize the CBN’s stance, but it is true that binance has access to information about all of these things and can’t claim not to have tracked down all of the transactions that took place on its platform. That is the argument I am attempting to make—everything on this list is traceable and verifiable.
“They used a number of KYC measures. The majority of these cryptocurrency sites use the BVN for KYC, and valid documents include drivers licenses, passports, NINs, and permanent voter cards.
“CBN claims that $26 billion is unknown, but they haven’t explained how they came to that conclusion. I can assure you that these items are traceable, that transactions on any site that go through blockchain cannot be tracked, and that using a centralized exchange like Binance ends the transaction process because you are not allowed to use those platforms without having your name revealed.
