Key Insights:
- Binance faces heightened scrutiny in Nigeria, leading to the discontinuation of NGN services.
- Central Bank of Nigeria alleges illicit transactions and “suspicious flows” of funds involving Binance.
- Regulatory challenges prompt Binance to delist NGN spot trading pairs and cease various NGN-related services.
Global cryptocurrency exchange Binance has announced its decision to discontinue all Nigerian Naira (NGN) services, aligning with Nigeria’s intensified crackdown on cryptocurrency exchanges. This move comes after Binance faced regulatory scrutiny and legal challenges in the country.
In a statement released on March 5, Binance urged users to withdraw, trade, or convert their NGN assets before March 8, 08:00 UTC, when the firm automatically converts remaining NGN balances into USDT (Tether) based on a specified conversion rate.
Binance’s plan includes stopping support for NGN deposits after March 8, 14:00 UTC, and suspending NGN withdrawals on the same date at 06:00 UTC. The exchange will also delist all existing NGN spot trading pairs starting March 7.
The firm aims to convert any remaining NGN balances in users’ spot and fund wallets into USDT at a ratio of 1 USDT to 1,515.13 NGN post-March 8. Binance Pay, Binance P2P, Auto Invest, and Binance Convert services will also be affected by the discontinuation of NGN-related services.
This decision by Binance follows a series of legal challenges in Nigeria, where the exchange faced regulatory scrutiny despite its efforts to ensure compliance. Notably, the Nigerian arm’s executives were detained amid the regulatory crackdown, and there were rumors of a substantial fine, although Nigerian authorities refuted such claims.
The Central Bank of Nigeria’s governor, on February 27, accused crypto exchanges, including Binance, of handling illicit transactions and flagged “suspicious flows” of funds. The National Security Adviser reportedly confiscated the passports of two Binance executives in Abuja.
”in the case of Binance, In the last one year, 26 billion dollars has passed through Binance Nigeria from sources and users who we cannot adequately identify.”
CBN Governor, Olayemi Cardoso pic.twitter.com/A6O2wlsY5M
— Channels Television (@channelstv) February 27, 2024
As Nigeria emerges as one of the world’s fastest-growing crypto economies, regulatory authorities are less welcoming, with calls for a ban on Binance, KuCoin, and other crypto trading platforms. The Nigerian House of Representatives Committee on Financial Crimes summoned Binance CEO Richard Teng to appear before the committee.
In conclusion, Binance’s move to cease NGN services reflects the challenges posed by Nigeria’s regulatory crackdown on cryptocurrency exchanges. The decision impacts users and highlights the complexities faced by global exchanges operating in evolving regulatory landscapes.
