Binance, the world’s leading cryptocurrency exchange by trading volume, has made a decisive move to cease all services related to the Nigerian Naira (NGN) on its platform. This announcement comes as a response to the changing regulatory environment and Binance’s commitment to compliance and transparency in its operations.

Timeline for Service Discontinuation

The discontinuation of NGN services will follow a specific timeline, as outlined by Binance. The immediate call to action for users is to withdraw their NGN balances, trade their NGN assets, or convert their NGN into cryptocurrency before the services are fully phased out. Notably, from March 8, 2024, any remaining NGN balances will be converted into the stablecoin USDT, with Binance setting a fixed conversion rate based on the recent average closing prices of the USDT/NGN trading pair.

Final Dates for NGN Transactions

Binance has set clear deadlines for its users:

NGN deposits will cease from March 5, 2024, at 14:00 UTC.

Withdrawals will not be supported after March 8, 2024, at 06:00 UTC.

Conversion of NGN balances to USDT will begin on March 8, 2024, at 08:00 UTC, with the specified exchange rate of 1 USDT = 1,515.13 NGN.

Impact on Trading Pairs and Other Services

In line with this, Binance will delist all existing NGN spot trading pairs and remove NGN from Binance Convert. The platform’s P2P service has already delisted NGN trading pairs, and Binance Pay will also remove NGN from its supported payment options. Users participating in Binance Auto-Invest plans with NGN will need to adjust their strategies accordingly.

Pressure from Nigerian government

Binance has been facing increased scrutiny from the Nigerian government due to allegations of terrorism financing, money laundering, and exchange rate manipulation.

The Nigerian House of Representatives Committee on Financial Crimes has summoned Binance CEO Changpeng Zhao to appear before the committee by March 4, 2024. The committee’s Chair, Ginger Onwusibe, issued the ultimatum to address suspicions of the exchange’s involvement in illicit financial activities. The committee has expressed its commitment to combating financial crimes and protecting Nigerian citizens from potential risks posed by foreign companies operating in the country.

On March 1, 2024, Blockchain.News reported that the Nigerian government was seeking $10 billion in damages from Binance, alleging that the exchange had manipulated exchange rates, contributing to the Naira’s 70% devaluation. The platform has also been accused of facilitating money laundering and terrorism financing. The Central Bank of Nigeria has reportedly detained two foreign executives and disclosed $26 billion in cryptocurrency trades.

However, both the Nigerian government and Binance have since denied these allegations. In a statement, Binance clarified that it has not received any official communication from the Nigerian authorities regarding the alleged summons or the $10 billion damages claim. The exchange maintained that it operates in compliance with local laws and regulations and has a strong commitment to anti-money laundering and combating the financing of terrorism (AML/CFT) measures.

Binance’s Commitment to the Crypto Ecosystem

Despite these changes, Binance has expressed gratitude to its users for their continued support and assures that it remains dedicated to building a sustainable crypto ecosystem. The focus on transparency and growth within the regulatory frameworks is evident in Binance’s approach to the discontinuation process.

Advisory and Risk Warning

Binance advises users to manage their assets accordingly and reminds them of the inherent volatility and risk associated with digital asset investments. The exchange encourages informed decision-making and, where necessary, consultation with financial advisors.

Conclusion

The halting of NGN services by Binance is a significant development for Nigerian users and reflects the broader challenges that crypto exchanges face in navigating global regulatory waters. As Binance and other platforms adapt to these changes, the crypto community will likely see an increased emphasis on compliance and risk management across the industry.