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Binance, a prominent global cryptocurrency exchange, has recently garnered significant attention due to its decision to discontinue all services involving the Nigerian Naira (NGN), following increased regulatory scrutiny in Nigeria. The exchange has faced heightened pressure amid the country’s recent crackdown on cryptocurrency exchanges, particularly concerning concerns over currency manipulation.
In response to legal challenges from Nigerian regulatory bodies, Binance has announced plans to cease specific services, aligning with the increased regulatory scrutiny. This development has attracted considerable interest from participants in Nigeria’s crypto market, as they anticipate potential impacts on the nation’s crypto landscape.
In its statement released on March 5, Binance urged its users to withdraw, trade, or convert NGN assets into cryptocurrency before the cessation of NGN-related services, scheduled to begin on March 8 at 08:00 UTC. Any remaining NGN balances in users’ accounts after this date will be automatically converted into USDT, according to a specified conversion rate provided by Binance.
Furthermore, Binance plans to halt NGN deposits after March 8 at 14:00 UTC, with NGN withdrawals suspended simultaneously at 06:00 UTC on the same date. Subsequently, any remaining NGN balances in users’ spot and fund wallets will be converted into USDT at a rate of 1 USDT to 1,515.13 NGN.
Additionally, Binance intends to delist all existing NGN spot trading pairs starting March 7, with open spot orders to be automatically closed when trading for the relevant pairs ceases. The discontinuation of services will also affect various other Binance features such as Binance Convert, Binance P2P, Auto Invest, and Binance Pay.
Binance’s legal challenges in Nigeria have unfolded against the backdrop of the country’s broader crypto crackdown. Despite Binance’s efforts to ensure regulatory compliance and cooperate with local authorities, its Nigerian executives faced detainment amid the regulatory scrutiny. Speculation regarding a rumored $10 billion fine for Binance circulated, although Nigerian authorities denied such claims. Furthermore, Nigeria’s regulatory scrutiny extended to other prominent exchanges like Kraken and Coinbase, reflecting a broader trend in the country’s approach to cryptocurrency regulation.
Elijah Idowu
