March 27, 2024
Binance Set to Discontinue Nigerian Naira Transactions by March 8
Latest Cryptocurrency News

Binance Set to Discontinue Nigerian Naira Transactions by March 8

In a significant development within the cryptocurrency landscape, major global exchange Binance has announced its departure from the Nigerian market, discontinuing all services involving the Nigerian naira (NGN). The decision, officially disclosed on March 5, signals a pivotal shift in Binance’s operations amidst mounting regulatory scrutiny in Nigeria.

Effective March 8, Binance will suspend NGN withdrawals, with remaining NGN balances automatically converted to the Tether stablecoin. The exchange has advised users to withdraw NGN funds, and trade or convert them into crypto assets before the cessation of NGN services. Notably, the conversion rate will be determined based on the average closing price of the USDT/NGN trading pair on Binance Spot over the preceding seven days.

Additionally, NGN deposits will be immediately suspended after 2:00 pm UTC on March 5, while all trading pairs involving NGN will be removed from Binance on March 7. Binance Pay, the platform’s payment service, will also eliminate NGN as a supported payment option on March 6.

The decision to exit the Nigerian market follows Binance’s peer-to-peer platform’s delisting of all NGN trading pairs in late February. This move comes against the backdrop of heightened regulatory scrutiny in Nigeria, with concerns raised by the Central Bank of Nigeria regarding potential illicit activities and suspicious fund flows on the exchange.

Allegations of illicit operations have further escalated, with reports indicating that Nigeria’s National Security Adviser confiscated the passports of two Binance executives in Abuja. The executives, citizens of the United States and the United Kingdom, have been embroiled in regulatory inquiries, including a summons for Binance CEO Richard Teng to appear before the Nigerian House of Representatives Committee on Financial Crimes.

Nigeria, renowned for its rapid adoption of cryptocurrencies, has emerged as a key market for digital assets. However, regulatory authorities have expressed reservations, with calls for the ban of Binance, KuCoin, and other crypto trading platforms echoing within the government. This regulatory friction underscores the challenges faced by cryptocurrency exchanges operating within Nigeria’s evolving regulatory landscape.

Despite Nigeria’s prominence as one of the fastest-growing crypto economies globally, regulatory uncertainties pose significant hurdles for market participants. As the regulatory landscape continues to evolve, stakeholders navigate the delicate balance between fostering innovation and addressing regulatory concerns within the burgeoning cryptocurrency sector.

Image: Wallpapers.com

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