NAIROBI (Coinchapter.com) – Cryptocurrency exchange giant Binance faces a setback in Africa’s most populous nation as it is forced to discontinue Nigerian Naira (NGN) services. Effective March 8th, 2024, Binance will convert any remaining NGN balances in user accounts to USDT. This move underscores a de facto Nigeria Binance ban, signaling increasing regulatory challenges for the exchange.
This development underscores the growing tension surrounding the Nigeria Binance ban. Last month, reports surfaced that Nigerian officials detained Binance staff and demanded a hefty $10 billion fine. The service discontinuation follows a period of increasing scrutiny directed toward Binance.
Last month, Bayo Onanuga, a presidential adviser, called for a ban on Binance and other cryptocurrency platforms, accusing the exchange of setting the exchange rate for Nigeria and undermining the Central Bank of Nigeria.
Binance Services Discontinued in Nigeria
In response to the escalating situation, Binance announced the discontinuation of all Nigerian Naira (NGN) services. As of March 8th, 2024, any remaining NGN balances in Binance accounts will be automatically converted to USDT. The company clarified that NGN deposits will cease on March 5th, 2024 while NGN withdrawals will cease on March 8th.
Binance announcement to Alt services in Nigeria, source Binance
The exchange further announced the delisting of all existing NGN spot trading pairs. This change eliminates direct trading between the Nigerian naira and cryptocurrencies like Bitcoin (BTC) and Tether (USDT) on Binance’s platform.
Nigeria’s Stance on Crypto
Nigeria’s relationship with cryptocurrency has been turbulent. In 2021, the Central Bank of Nigeria imposed restrictions on regulated financial institutions providing services to cryptocurrency exchanges, effectively creating a Nigeria Binance ban. The move aimed to curb money laundering concerns and protect the naira’s value. However, despite the ban, the popularity of cryptocurrency among Nigerians continued to surge.
The latest restrictions on Binance suggest that Nigeria’s government is intent on tightening its grip on cryptocurrency activities, further solidifying the Nigeria Binance ban. This stance could stem from concerns surrounding the naira’s ongoing devaluation and the potential for cryptocurrencies to facilitate capital flight.
The discontinuation of NGN services on Binance will undoubtedly disrupt the operations of Nigerian cryptocurrency traders, who will now need to find alternative platforms or convert their holdings to stablecoins like USDT. Binance is a major player in the global cryptocurrency market, and this development highlights the ongoing regulatory hurdles that exchanges face in various jurisdictions, especially with the ongoing ban of Finance in Nigeria.
