Cryptocurrency exchange Binance made a significant announcement regarding its services in Nigeria, stating that it would be discontinuing all services associated with the Nigerian local fiat currency, Naira (NGN). This decision was communicated in a phased approach, beginning immediately with the cessation of NGN deposits. Subsequently, users were given until Mar. 8 to withdraw their NGN assets before they are automatically converted to USDT at a fixed rate.
While Binance did not provide an official reason for this move, it is speculated that the decision could be linked to the ongoing issues between the exchange and the Nigerian government. The Nigerian authorities have accused Binance of exacerbating the country’s foreign exchange challenges by interfering with the setting of exchange rates, a role typically held by the Central Bank of Nigeria. This has resulted in a crackdown on the platform, including a blockade of its website and the detention of two Binance staff members.
The discontinuation of NGN services by Binance has led to a significant impact on Nigerian users who relied on the platform for various services including deposits, withdrawals, conversions, spot trading, P2P, Auto-invest, and Binance Pay. With the delisting of all NGN spot trading pairs, users will have to find alternative platforms for their cryptocurrency trading needs. Furthermore, the looming threat of a $10 billion fine on Binance by the Nigerian government has added to the uncertainty surrounding the future of the exchange in the country.
As of press time, Binance has not responded to requests for additional commentary on the situation. The exchange’s CEO, Richard Teng, has been summoned by Nigerian lawmakers to appear before a committee to address allegations of money laundering and terrorism financing. The outcome of this summons remains unclear, as reports suggest that the authorities have yet to finalize their actions against the exchange.
The decision by Binance to discontinue NGN services in Nigeria has sparked a wave of uncertainty and concern among users in the country. The ongoing tensions between the exchange and the Nigerian government have further complicated the situation, raising questions about the future of cryptocurrency exchanges in the region. As the story continues to unfold, it is essential for users to stay informed and explore alternative options for their cryptocurrency transactions.
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