- Crypto exchange Binance will suspend all Nigerian naira-related services.
- The exchange has navigated regulatory troubles within the country over the past week.
- The Nigerian government summoned Biannce executives over allegations of terror financing.
Over the past week, Binance, the world’s largest crypto exchange, has landed in the regulatory crosshairs of the Nigerian government amid the latter’s pursuit of a scapegoat for its local currency challenges. Despite the exchange’s efforts to calm the storm, its woes have only escalated, resulting in allegations of terror financing and a potential $10 billion fine.
Following a week-long tussle between Binance and the government, the future of the exchange’s operations within the country now hangs in the balance.
Binance Drops Naira-Backed Services
On Tuesday, March 5, Binance announced the suspension of all Nigerian naira-related services across its platforms.
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This includes the removal of Naira from the list of the exchange’s supported payment options, delisting all existing NGN pairs, and suspending the USDT-NGN peer-to-peer exchange option.
Local investors will be prohibited from facilitating deposits in NGN starting from Tuesday, March 5, 2024, at 14:00 (UTC), and withdrawals from Friday, March 8 at 06:00 (UTC).
While the trading and exchange of Nigerian naira will cease, it does not mark the complete exit of the exchange.
How Binance’s Exit Impacts Local Investors
Local Nigerian investors can continue accessing other services and features on the exchange without hassle, including trading and exchanging non-naira-backed crypto assets.
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Users not holding balances in NGN are unimpacted. However, all current NGN balances must be converted into USDT for easy withdrawal before the final March 8 deadline.
“Users are encouraged to withdraw NGN, trade their NGN assets or convert NGN into crypto prior to the discontinuation of these NGN services,” the exchange stated.
Access to the exchange’s official website remains restricted within the country; however, users can access the exchange’s applications to explore its services.
On the Flipside
- The local Nigerian crypto community has criticized the government’s move, citing that it is denying accountability and blaming the exchange for its woes.
- Binance has faced global scrutiny from financial regulators over the past year, and the exchange’s former CEO Changpeng Zhao is currently facing potential jail time in the United States.
- Despite Binance’s exit amid the government’s broader crackdown, local Nigerians retain access to other foreign cryptocurrency exchange platforms.
Why This Matters
The suspension of all Naira-related services by Binance underscores the impact of the mounting regulatory pressure from local Nigerian authorities on the exchange. While only partial, Binance’s withdrawal from the largest African crypto market could spell substantial business loss.
Read all about the Binance-Nigeria Saga for a better understanding of the exchange’s exit:
Unraveling Binance’s Nigeria Woes as Govt Hunts User Info
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