Binance discontinues all services in the Nigerian currency. This development follows the recent crackdown on cryptocurrency platforms in the nation. In response to mounting regulatory pressures, the company has ceased naira trading on its peer-to-peer (P2P) platform.
This decision came amid reports indicating that the Nigerian government was contemplating blocking access to its website, along with several others operating within the country.
Binance Discontinues All Services in the Nigerian Currency
In a communication addressed to its users on Tuesday, March 5, 2024, Binance declared its decision to discontinue support for services linked to the Nigerian naira (NGN). The exchange urged users holding naira funds on the platform to withdraw, trade, or convert them into alternative assets. Binance set a deadline of March 8, 2024, for users to take action, after which it would automatically convert the remaining naira funds to USDT (Tether).
This strategic move did not come as a surprise, given Binance’s recent entanglement in Nigeria’s regulatory crackdown on cryptocurrency platforms. On February 20, 2024, the Binance peer-to-peer (P2P) feature displayed a notable absence of buy or sell advertisements, sparking rumors that Nigerian regulators were targeting the platform due to alleged implications in the depreciation of the naira currency.
What This Development Means For Nigeria
These speculations gained credence with subsequent events. Reports emerged of a proposed blockade of crypto platforms by telecommunication companies, resulting in restricted access to crypto websites, including Binance, Coinbase, and local platforms like Quidax, through mobile Internet providers such as MTN and Airtel. Additionally, Binance executives faced detainment by the Office of the National Security Adviser (NSA), signaling an escalation in regulatory scrutiny. The NSA further confirmed an ongoing investigation into Binance, coupled with rumors of a substantial fine amounting to $10 billion.
The Reason for Binance’s Decision
Although Binance did not explicitly attribute the cessation of naira services to these developments, the circumstances suggest a correlation. As part of the transition, customers holding naira balances on the platform will witness an automatic conversion to USDT, executed at an exchange rate of ₦1,515 to 1 USDT, reflecting the average closing pair on the Binance spot over the preceding seven days.
What Traders with Outstanding Orders Based On NGN Trading Pairs Should Expect
Furthermore, traders with outstanding orders based on NGN trading pairs will observe the automatic closure of their orders. Notably, Binance had already removed the naira from its P2P feature as of February 28, 2024, aligning with the broader shift away from naira-related services on the platform.
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