Binance, a prominent global cryptocurrency exchange, has announced the termination of all services involving the Nigerian naira (NGN) in Nigeria. The decision comes amidst ongoing regulatory disputes with the Nigerian government and accusations of forex market manipulation and illicit fund movement.
In an official statement released on Tuesday, Binance confirmed its decision to halt NGN withdrawals effective from March 8th. Following this date, any remaining NGN balances in users’ Binance accounts will be automatically converted into the Tether (USDT) stablecoin, as outlined in the announcement.
Prior to the discontinuation of its services, Binance has advised users to proactively withdraw their NGN, engage in NGN asset trading, or convert their NGN holdings into cryptocurrencies.
“From 2024-03-08 08:00 (UTC), any remaining NGN balances in users’ Binance account will be automatically converted to USDT,” the statement read. The conversion rate will be calculated based on the average closing price of the USDT/NGN trading pair on Binance Spot over the last seven days.
The decision to halt NGN services comes on the heels of Binance’s recent entanglement in regulatory disputes with the Nigerian government. Earlier reports highlighted the detention of two high-profile Binance executives by Nigerian authorities. The executives were apprehended following the ban of Binance’s website in the country and were subsequently arrested by the office of the National Security Adviser (NSA).
The regulatory tensions escalated further when Yemi Cardoso, Nigeria’s central bank governor, disclosed during a monetary policy meeting that Binance Nigeria had facilitated transactions exceeding $26 billion from unidentified sources within a year. As a result, the Nigerian government imposed a staggering $10 billion fine on the cryptocurrency exchange.
However, Binance has refuted any awareness of the imposed fine, adding to the complexities of the ongoing regulatory disputes between the company and the Nigerian government.
The cessation of NGN services by Binance marks a significant development in the cryptocurrency landscape in Nigeria. It underscores the challenges faced by cryptocurrency exchanges in navigating regulatory frameworks and compliance requirements in various jurisdictions.
The move also highlights the growing scrutiny of cryptocurrency activities by regulatory authorities worldwide, as governments seek to address concerns related to investor protection, financial stability, and illicit financial activities.
As the cryptocurrency industry continues to evolve, regulatory compliance and adherence to established guidelines will remain paramount for cryptocurrency exchanges operating in Nigeria and globally. The outcome of Binance’s regulatory disputes with the Nigerian government will likely have implications for the broader cryptocurrency ecosystem and its future trajectory in the country.
