Binance Ends Naira Support and Exits Nigeria
The crypto exchange's move follows the start of a regulatory spat with local authorities
March 5, 2024 01:18 PM
Reading time: 1 minute, 36 seconds
TL;DR Due to ongoing regulatory disputes, Binance has announced it will halt all services for Nigeria's fiat currency, the naira. The move to cease support includes automatic conversion of naira balances to USDT, affecting deposits, withdrawals, and trading pairs. This decision underscores the escalating tension between the crypto exchange and Nigerian authorities.
In a move that has sent ripples through the cryptocurrency community, Binance, one of the world's leading crypto exchanges, has decided to discontinue its services for the Nigerian naira.
The decision comes amid a growing regulatory conflict with the Nigerian government, marking a significant turn in the relationship between the exchange and one of Africa's largest economies.
Starting from March 8, all naira balances on Binance will be automatically converted to USDT, a stablecoin pegged to the US dollar, using a conversion rate of 1 USDT for 1,515.13 naira.
This comes after the exchange announced it would stop supporting deposits in naira after 14:00 UTC on the same day, with withdrawals ceasing shortly thereafter.
Furthermore, all spot trading pairs against the naira will be delisted, and associated services like Binance Convert, Binance P2P, Auto Invest, and Binance Pay will no longer support the Nigerian currency.
The backdrop to this dramatic decision involves a contentious dispute between Binance and the Nigerian government. Reports have emerged, notably from the BBC, claiming that the Nigerian authorities demanded a hefty sum of $10 billion from Binance for allegedly facilitating illegal transactions that purportedly harmed the country's financial stability.
Additionally, there have been multiple reports suggesting that the exchange has been under investigation by Nigerian authorities, with several executives reportedly detained.
This move by Binance reflects the broader challenges that cryptocurrency exchanges face in navigating the complex regulatory environments across different countries.
Nigeria, with its significant population and growing interest in cryptocurrencies, has been a crucial market for exchanges like Binance. However, the recent developments indicate a potentially changing landscape for crypto operations in the country.
As the situation unfolds, the cryptocurrency community and stakeholders in Nigeria will be closely watching the implications of this decision.
The move by Binance not only affects the immediate users and services related to the naira but also poses questions about the future regulatory climate for cryptocurrencies in Nigeria and potentially other countries in the region.
