Binance, the world’s leading cryptocurrency exchange platform, has officially terminated its services involving the Nigerian Naira (NGN), citing ongoing legal disputes with Nigerian regulators as the primary reason for the decision.
The move follows a protracted legal battle between Binance and the Nigerian government over regulatory concerns, particularly regarding the exchange rate between the dollar and the NGN on the platform. The government accused Binance of manipulating the NGN’s forex rate through currency speculation and rate fixing.
Governor of the Central Bank of Nigeria, Olayemi Cardoso, revealed that approximately $26 billion had flowed through Binance Nigeria in the past year from unidentified sources. These allegations led to the government blocking Binance’s online platforms, including its website, in Nigeria.
The government’s actions have sparked concerns, especially among Nigerian youths who heavily rely on Binance for peer-to-peer transactions and trading activities. Prior to the government’s intervention, the NGN had experienced significant depreciation, with the dollar reaching over 1,800 NGN in the parallel market.
The Nigerian government has also expressed apprehension over a report by Chainalysis, revealing that crypto transactions in the country amounted to $56.7 billion between July 2022 and June 2023, with a significant portion unaccounted for. As part of its response, the government detained two senior Binance staff members who had recently arrived in the country.
In light of the escalating controversy, Binance has advised its Nigerian users to withdraw their NGN assets, trade them, or convert them into cryptocurrencies. The company outlined a timeline for the discontinuation of NGN services, including delisting NGN trading pairs and ceasing NGN withdrawals.
Additionally, Binance announced that any remaining NGN balances in users’ wallets would be converted into USDT at a specified ratio. The conversion process is expected to take up to 24 hours or longer, with USDT tokens credited to users’ wallets thereafter.
Despite these measures, the termination of NGN services marks a significant development in Binance’s operations in Nigeria and underscores the challenges posed by regulatory scrutiny in the cryptocurrency industry.
