Binance, a leading global cryptocurrency exchange, has made the decision to discontinue its operations in the Nigerian market, announcing a complete cessation of services involving the local fiat currency, the Nigerian Naira (NGN).
The official announcement from Binance on March 5 stated that the platform would halt NGN withdrawals after March 8. Additionally, any remaining NGN balances in users’ Binance accounts after March 8 will be automatically converted to Tether, a stablecoin, as per the announcement.
Users are advised to withdraw their NGN funds, trade their NGN assets, or convert NGN to cryptocurrency before the cessation of NGN services takes effect.
Binance will also cease NGN deposits immediately, with support for such transactions ending at 2:00 PM UTC on March 5. Furthermore, all trading pairs involving NGN will be delisted on March 7, and Binance Pay, the exchange’s payment service, will remove NGN from its list of supported payment options on March 6.
Moreover, Binance's peer-to-peer platform had already delisted all NGN trading pairs by the end of February.
The decision to withdraw support for the Nigerian Naira comes amidst heightened regulatory scrutiny faced by Binance in Nigeria. The governor of the Central Bank of Nigeria expressed suspicion regarding the processing of illegal transactions by Nigeria’s cryptocurrency exchanges, singling out Binance's financial activities as "suspicious."
Additionally, Nigeria’s national security adviser reportedly seized the passports of two Binance executives in Abuja, both of whom are U.S. and British citizens. As concerns over Binance’s alleged illegal activities in Nigeria escalate, the Financial Crimes Committee of Nigeria’s House of Representatives has summoned Binance CEO Richard Teng to appear before the committee. The committee issued an ultimatum for Binance management to attend the meeting on or before March 4.
Despite Nigeria's emergence as one of the fastest-growing crypto economies globally, regulators have shown reluctance toward the rapid adoption of cryptocurrencies. In February 2024, an adviser to Nigeria’s president called for a ban on Binance, KuCoin, and other cryptocurrency trading platforms in the country. This move echoes Nigeria's central bank's ban on regulated financial institutions providing services to cryptocurrency exchanges two years prior.
