According to an announcement made by Binance, the world’s largest cryptocurrency exchange, they have decided to exit the Nigerian market. As a result, they will be discontinuing all services involving the Nigerian naira (NGN), the local fiat currency.

Starting from March 8, Binance will suspend NGN withdrawals, and any remaining NGN balances in users’ accounts will be automatically converted to the Tether stablecoin (USDT). To facilitate a smooth transition, Binance has advised its Nigerian users to withdraw their NGN funds, trade their NGN assets, or convert them into cryptocurrencies before the discontinuation of NGN services.

The conversion rate for NGN to Tether will be determined based on the average closing price of the USDT/NGN trading pair on Binance Spot over the last seven days. This calculation will ensure that users’ NGN balances are converted into an equivalent value of USDT.

It’s important to note that Binance’s decision to exit the Nigerian market and discontinue NGN services may have been influenced by various factors specific to their business operations and the regulatory environment in Nigeria. Users and participants in the Nigerian cryptocurrency market should refer to official announcements from Binance and seek alternative platforms or services to meet their cryptocurrency trading and investment needs.

For the most accurate and up-to-date information regarding Binance’s plans and the Nigerian cryptocurrency market, it is advisable to refer to official statements from Binance and reliable financial news sources.

Binance Temporarily Suspends NGN (Nigerian Naira) Deposits

Binance has recently made significant changes regarding its operations in Nigeria due to increased regulatory scrutiny. The cryptocurrency exchange has suspended NGN deposits, rendering them unsupported after 2:00 pm UTC on March 5. Furthermore, all trading pairs involving NGN will be removed from the Binance platform on March 7. Binance Pay, the exchange’s payment service, will also cease to support NGN as a payment option starting from March 6.

These decisions to discontinue NGN services in Nigeria come in response to concerns raised by the governor of the Central Bank of Nigeria regarding illicit transactions and suspicious fund flows at crypto exchanges, including Binance. Reports suggest that the country’s National Security Adviser has confiscated the passports of two Binance executives, who hold citizenship in the United States and the United Kingdom, in Abuja, Nigeria’s capital.

The growing suspicions surrounding Binance’s alleged illicit activities in Nigeria have prompted the Nigerian House of Representatives Committee on Financial Crimes to summon Binance CEO Richard Teng to appear before the committee.

To stay informed about the latest developments and obtain accurate information on these matters, it is advisable to refer to official announcements from Binance, reliable financial news sources, and updates from regulatory authorities in Nigeria. These sources will provide the most up-to-date and accurate information regarding Binance’s actions and the regulatory situation in the Nigerian cryptocurrency market.

No Evidence of $10 Billion Fine on Binance by Nigeria

Last week, it was reported that the Nigerian government had imposed a substantial fine of $10 billion on Binance as part of a broader crackdown on the platform. The objective behind this action is to stabilize the local currency of Nigeria.

Bayo Onanuga, the special adviser on information and strategy to President Bola Tinubu, disclosed the fine in an interview with the BBC. The Nigerian government’s actions against Binance and other cryptocurrency firms are driven by concerns over ongoing forex market manipulation and illicit fund movements. Authorities believe that these activities have contributed to the weakening of the Nigerian naira.

The regulatory scrutiny on Binance in Nigeria dates back to September 2023 when the country’s Securities and Exchange Commission (SEC) declared Binance Nigeria Limited illegal, citing the platform’s lack of registration and regulation by the commission.

Nigeria has experienced significant growth in its crypto economy, emerging as one of the fastest-growing crypto markets globally. In September 2023, Chainalysis, a prominent crypto intelligence firm, ranked Nigeria as the second-highest country in terms of cryptocurrency adoption. Additionally, based on Google search volumes for terms like “cryptocurrency” or “buy crypto,” Nigeria has shown the highest level of interest in cryptocurrencies.

However, despite the rapid pace of crypto adoption in Nigeria, regulators have displayed less enthusiasm. In February 2024, an adviser to Nigeria’s president called for a ban on Binance, KuCoin, and other crypto trading platforms in the country. It is worth noting that two years ago, Nigeria’s central bank prohibited regulated financial institutions from providing services to crypto exchanges in the nation.

For the latest updates and accurate information regarding the Nigerian government’s actions, Binance’s situation, and cryptocurrency regulations in Nigeria, it is advisable to refer to official announcements, reputable news sources, and statements from regulatory authorities.

By ailf

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