Cryptocurrency exchange Binance recently announced its decision to discontinue all services associated with the Nigerian local fiat currency, Naira (NGN), in a phased approach. This move caught many users by surprise as they were informed that they would no longer be able to access various NGN-related services, including deposits, withdrawals, conversions, spot trading, P2P, Auto-invest, and Binance Pay. The exchange set a deadline for users to withdraw their NGN assets by Mar. 8 and stated that any remaining balance would be automatically converted to USDT at a fixed rate. Additionally, Binance plans to delist all NGN spot trading pairs and close all open positions by a certain date.
While Binance did not provide an official reason for discontinuing NGN services, speculations point towards the ongoing issues between the exchange and the Nigerian government. The government has accused Binance of exacerbating Nigeria’s foreign exchange challenges by allegedly interfering with the Central Bank of Nigeria’s role in setting exchange rates. This conflict has escalated to the point where the authorities have taken action against the exchange, including blocking its website, detaining staff members, and seizing passports. Reports have even surfaced about a potential $10 billion fine being imposed on Binance for its alleged infractions.
The situation has become increasingly precarious for Binance in Nigeria as the government continues to investigate the exchange’s activities. Nigerian lawmakers have summoned Binance CEO Richard Teng to appear before a committee to address allegations of money laundering and terrorism financing. The uncertainty surrounding Binance’s future in Nigeria has cast a shadow over the crypto community in the country, raising concerns about the regulatory environment and the implications for other cryptocurrency exchanges operating in Nigeria.
Binance’s decision to discontinue NGN services in Nigeria has far-reaching implications for both the exchange and its users. The ongoing conflict with the Nigerian government has created a challenging environment for Binance to operate in, leading to disruptions in services and regulatory scrutiny. As the situation unfolds, it remains to be seen how Binance will navigate these challenges and whether it will be able to resolve its issues with the authorities. For now, Nigerian users of the exchange are left grappling with the consequences of this decision and the uncertainty surrounding the future of cryptocurrency trading in the country.