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Four reasons Binance can block your crypto account or restrict access to your money

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Is Africa’s financial system about to experience yet another major disruption? Here's what we know

Binance, the world’s largest cryptocurrency exchange, has been accused of blocking crypto accounts of Nigerians on its digital currency platform, and seizing their money.

Nigerians took to social networking site, Twitter, with hashtag “BinanceStopTheScam”, to allege that their wallets, which keep their funds on Binance had been locked by the United States-based firm, while refusing them to trade.

Note that individuals are allowed to save money on crypto wallet in Naira, US dollar or any other country’s fiat, before converting the legal tender to cryptocurrency.

And Nigerians have been using the peer-to-peer feature on exchanges like Binance to trade bitcoin, ethereum and other cryptoassests since the Central Bank of Nigeria (CBN) restricted banks from conducting business with exchange platforms.

However, the business relationship between Binance and Nigerians hit the rock today, as many accounts got locked, for reasons not known to many.

READ ALSO: Cryptocurrency investors lose $400m to hackers, Lazarus Group

Four reasons Binance can block your accounts

1. You are a politically-exposed persons. Someone who holds an important position, mostly in government, which can easily attract bribery or promote corruption is not allowed on Binance.

This is to prevent the individual who occupies the prominent function from conducting money laundering through their exchange platform, as crypto has become a new tool used to siphoned funds.

2. Binance has total control: If you breach any terms and conditions of Binance, the company has the right to freeze your accounts without your consent or prior notice, and many account holders have agreed to this without knowing.

Binance can close your order request and report your accounts to authorities, which means the exchange platform can carry out a probe without your consent.

3. Engaging in unsanctioned activity: For Binance account holders, routine is very important in preventing your wallet from being locked by the cryptocurrency exchange.

Any unusual activity detected by Binance could result in restriction. Also, unauthorised access to your accounts, that is, when a third party gain access, it is shut down.

4. Court/government order: Your account can also be frozen or closed totally upon a court order relating to criminal investigation or other pending litigation.

Also, Binance said regulatory and government authority had the right to request their exchange platform to limit access to your account without prior notice.

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