Cryptocurrency exchange Binance made the bold move to discontinue all services associated with the Nigerian local fiat currency, Naira (NGN), in a phased approach. This decision, made public on Mar. 5, came as a surprise to many as Binance announced that Nigerian users would no longer have access to various services related to NGN.
The decision to discontinue NGN services can be tied back to the ongoing issues between Binance and the Nigerian government. The Nigerian authorities have raised concerns about Binance’s impact on the country’s foreign exchange challenges, accusing the exchange of taking over the Central Bank of Nigeria’s role in setting exchange rates. As a result, the government imposed strict measures on Binance, including detaining staff members and seizing passports.
With immediate effect, NGN deposits have been halted, and users have until Mar. 8 to withdraw their remaining NGN assets. After the deadline, Binance plans to convert any remaining NGN balance to USDT at a fixed rate. Moreover, all NGN spot trading pairs will be delisted, and open trading positions will be automatically closed by Mar. 7. This sudden change in services can have a significant impact on Nigerian users who heavily rely on Binance for their cryptocurrency transactions.
The Nigerian government has been aggressive in its approach towards Binance, reportedly considering a hefty fine of $10 billion for the alleged infractions by the exchange. Lawmakers have summoned Binance CEO Richard Teng to appear before a committee to address concerns related to money laundering and terrorism financing. The uncertainty surrounding the government’s actions has created a sense of unease within the cryptocurrency community in Nigeria.
Binance’s decision to discontinue NGN services in Nigeria has far-reaching implications for both the exchange and its users. The ongoing conflict with the Nigerian government has led to a series of aggressive actions against Binance, raising questions about the future of cryptocurrency regulations in the country. As the situation continues to unfold, it remains to be seen how both Binance and the Nigerian government will navigate this challenging period.