In a recent announcement, crypto exchange Binance revealed its decision to discontinue all services associated with the Nigerian local fiat currency, Naira (NGN), in a phased approach. This move comes amidst ongoing tensions between Binance and the Nigerian government regarding the exchange’s operations in the country.
Binance informed its Nigerian users that they would no longer have access to several NGN-related services, including deposits, withdrawals, conversions, spot trading, P2P, Auto-invest, and Binance Pay. While NGN deposits have already been halted, users have until a specified deadline to withdraw their remaining NGN assets. After the deadline, any remaining NGN balance will be automatically converted to USDT at a fixed rate.
Although Binance did not provide an official reason for discontinuing NGN services, it is believed that the decision stems from the ongoing disputes with the Nigerian government. Authorities in Nigeria have accused Binance of exacerbating foreign exchange challenges by interfering with the Central Bank of Nigeria’s role in setting exchange rates. This has led to a crackdown on the exchange, including a blockade of its website and detainment of staff members.
Reports have surfaced suggesting that the Nigerian government is considering imposing a hefty fine on Binance for its alleged infractions. However, conflicting statements from officials indicate that a final decision has not been reached regarding the actions that will be taken against the exchange. Notably, Nigerian lawmakers have summoned Binance CEO Richard Teng to address concerns related to money laundering and terrorism financing allegations.
The cessation of NGN services by Binance has significant implications for both the exchange and its Nigerian users. While Binance faces challenges in maintaining operations in the country due to regulatory disputes, Nigerian users may experience disruptions in their cryptocurrency trading activities. The outcome of the ongoing conflict between Binance and the Nigerian government remains uncertain, with potential repercussions for both parties.