In response to regulatory pressures from Nigerian authorities, Binance, a major cryptocurrency exchange, is slated to discontinue all services involving the Nigerian naira (NGN) by March 8, 2024.
This decision, communicated to users via a company statement, entails the conversion of all NGN balances in user accounts to USDT (Tether). Effective immediately, Binance will cease support for naira deposits, urging users to withdraw their NGN funds, trade their NGN assets, or convert NGN into cryptocurrencies before the specified discontinuation date. Withdrawals of naira will be halted by March 8, with remaining balances automatically converted to USDT at a rate of N1,515.13 per USDT. Notably, this conversion rate is based on the average closing price of the USDT/NGN trading pair on Binance spot over the preceding seven days, ensuring transparency in the process.
“Users are encouraged to withdraw NGN, trade their NGN assets or convert NGN into crypto prior to the discontinuation of these NGN services,
“Withdrawals of naira will be stopped by March 8, 2024, after which they will be converted to USDT at N1,515.13/USDT. “Please note that the conversion rate is calculated based on the average closing price of the USDT/NGN trading pair on Binance spot in the last seven days,” the statement read.
Binance expressed gratitude to its user base for their ongoing support as the company navigates regulatory challenges and strives to foster transparency and sustainable growth within the cryptocurrency ecosystem. The decision to include the naira as Binance’s first African currency for peer-to-peer trading in 2020 was a significant milestone, reflecting the platform’s commitment to expanding its reach and accessibility across diverse markets.
“We thank you for your support as we continue to build the crypto ecosystem in a way that promotes transparency and long-term sustainable growth,” the crypto firm said.
Nonetheless, Binance’s latest move to discontinue naira services is situated within a broader context of regulatory scrutiny and intervention by the Nigerian government. Allegations of currency manipulation and concerns over capital outflows have prompted regulatory measures aimed at reigning in the activities of cryptocurrency exchanges operating within the country.
Governor Olayemi Cardoso of the Central Bank of Nigeria (CBN) recently revealed that an estimated $26 billion flowed through Binance Nigeria within a year, originating from sources and users that the apex bank could not identify.
In response to these developments, Governor Cardoso affirmed the Nigerian government’s commitment to safeguarding the integrity of the domestic market and preventing external entities from manipulating the value of the naira against the US dollar. Emphasizing the need for regulatory vigilance, he asserted that measures would be taken to counteract any infractions and maintain control over the country’s financial landscape.
“Suffice to say that we are determined to do everything it takes to ensure that we take charge of our market and not allow others to manipulate it… We will not accept it and will do everything possible to prevent any infraction,” he said.
