Obinna Iwuno, the President of the Stakeholders in Blockchain Technology Association of Nigeria (SiBAN), has challenged the assertion made by the Central Bank of Nigeria (CBN) regarding the inability to trace $26 billion in cryptocurrency transactions,Daily Trust reports.
The CBN expressed concerns about the flow of $26 billion through Binance Nigeria over the past year, attributing it to “unidentified sources.”
Iwuno clarified that Binance, a prominent cryptocurrency exchange, enforces Know Your Customer (KYC) protocols, requiring users to authenticate their identities before engaging in trading activities.
During an appearance on Channels TV on Tuesday, Iwuno argued that anonymity is not feasible on centralized exchanges like Binance due to mandatory KYC procedures.
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He stated, “Firstly, it’s crucial to comprehend how these platforms operate, as they implement a KYC system. On Binance, users must undergo KYC procedures before accessing their accounts or conducting any transactions. This ensures that every individual who has used or is using Binance is identifiable.”
Furthermore, Iwuno emphasized that transactions on Binance are recorded on the blockchain, rendering them non-anonymous. Although private information and transactions are not accessible to the public, law enforcement agencies or governments can obtain them from Binance when necessary.
He elaborated, “There have been numerous instances of fraud and scams involving international law enforcement agencies like Interpol and the EFCC. Funds flowing into Binance can be traced back to their owners. CBN’s assertion that $26 billion is untraceable lacks clarity. These transactions are traceable, and platforms like Binance have access to the necessary information.”
Iwuno also highlighted the various KYC measures utilized by cryptocurrency platforms, including the use of Bank Verification Numbers (BVN) and accepted identification documents such as passports, National Identification Numbers (NIN), driver’s licenses, and voter cards.
In conclusion, he stressed that transactions conducted through blockchain technology are traceable, and the use of centralized exchanges like Binance ensures that users’ identities are known, contradicting the notion that transactions cannot be traced.
