Binance halts Nigeria operations amid intense crypto crackdown
TLDR
- Binance, the largest cryptocurrency exchange, suspends Naira services in Nigeria due to regulatory challenges.
- All Naira deposits will cease after March 5, with withdrawals ending on March 8.
- NGN balances will be automatically converted to USDT, and NGN spot trading pairs will be delisted on March 7.
Binance, the world’s largest cryptocurrency exchange, has announced the suspension of all its Naira services starting March 8, citing regulatory challenges in Nigeria. According to a statement shared on its app, the company will cease Naira deposits after March 5, with withdrawals concluding on March 8.
In its statement on Tuesday, Binance revealed that any remaining NGN balances in users’ accounts will be automatically converted to USDT. Additionally, all existing NGN spot trading pairs will be delisted on March 7, and the naira will no longer be supported as a payment option on Binance Pay, the exchange’s payment solution.
This decision by Binance comes amidst heightened scrutiny of cryptocurrency exchanges in Nigeria. Recent actions include the arrest of two Binance executives by the Office of the National Security Adviser (NSA) last week, following their arrival in the country after the ban on the company’s website. Authorities have alleged Binance's involvement in "illegal transactions" and have imposed a $10 billion fine on the company, as reported by a presidential aide. Binance, however, has denied any knowledge of the fine.
Key Takeaways
Two weeks ago, Binance implemented limits on peer-to-peer transactions involving the USDT/NGN pair. This marked the second instance within six months that the exchange imposed restrictions on trading activities. Previously, the cryptocurrency exchange disabled the 'sell' feature and restricted Nigerian users' ability to buy to a price of ₦1802. The challenges faced by the company come in the wake of the Central Bank's reversal of its stance on cryptocurrency companies last year. Initially perceived as a positive shift towards digital currency assets, recent regulatory actions have cast doubt on that optimistic outlook.
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