Binance, a leading cryptocurrency exchange, has announced its decision to suspend all services in naira, effective March 8, 2024, amidst mounting regulatory scrutiny and government crackdowns on alleged breaches in foreign exchange regulations.
The official announcement, posted on Binance’s website, outlined the cessation of naira withdrawals after March 8, with remaining NGN balances automatically converted to the Tether stablecoin. Users were urged to withdraw their naira funds, trade their naira assets, or convert them to cryptocurrency before the stipulated service termination date.
Binance emphasized that the conversion rate would be determined based on the average closing price of the USDT/NGN trading pair on Binance Spot over the last seven days. Additionally, naira deposits were set to be immediately suspended after 2:00 pm UTC on Tuesday, March 5, 2024.
Furthermore, all trading pairs involving naira were scheduled for removal from the platform on March 7, 2024. This move comes in response to heightened regulatory pressures and calls for stricter oversight of cryptocurrency activities in Nigeria.
The call for action against Binance and other crypto platforms was amplified by Bayo Onanuga, the special adviser to President Bola Tinubu, who accused them of influencing exchange rates and encroaching on the Central Bank of Nigeria’s (CBN) role. CBN Governor Olayemi Cardoso disclosed that an estimated $26 billion had flowed through Binance Nigeria from unidentified sources within a year, underscoring the importance of regulatory collaboration to ensure market transparency and prevent manipulation.
Recent reports suggest that the federal government has demanded at least $10 billion in retribution from Binance for alleged illegal transactions in Nigeria. This demand follows the detention of two top executives from the crypto platform, signaling a significant escalation in the government’s efforts to enforce regulatory compliance within the cryptocurrency sector.
As Binance prepares to halt naira services, the cryptocurrency industry in Nigeria faces a period of uncertainty, with stakeholders closely monitoring developments amid ongoing regulatory challenges.
