Binance Exits Nigeria, Citing Regulatory Challenges
By Patience Ikpeme
In a move that sends shockwaves through the Nigerian crypto community, leading cryptocurrency platform Binance has announced the complete termination of all its services involving the Nigerian Naira (NGN) effective March 8, 2024.
The announcement, made in a statement released today, follows a series of escalating regulatory pressures faced by Binance in Nigeria. The Central Bank of Nigeria (CBN) has recently accused the platform of contributing to foreign exchange (forex) market instability, alleging that $26 billion worth of transactions have passed through Binance Nigeria Limited.
The statement details a phased withdrawal process: March 5, 2024:Naira deposits will be immediately suspended; March 7, 2024: All trading pairs involving the Naira will be removed from the platform; March 8, 2024: Naira withdrawals will cease, and any remaining Naira balances in user accounts will be automatically converted to the Tether (USDT) stablecoin.
Binance has encouraged users to withdraw their Naira holdings, trade them for other assets, or convert them to cryptocurrency before the designated deadlines.
This development is likely to have significant repercussions for the Nigerian crypto ecosystem, as Binance was a popular platform for local users. The reasons behind Binance’s decision remain unclear, but it underscores the ongoing tension between cryptocurrency platforms and regulatory bodies in Nigeria.
