Binance, the world’s largest crypto exchange by trading volume, has decided to exit Nigeria market terminates its operations involving the Nigerian naira (NGN), amidst mounting challenges with local regulators and the Nigerian government. Binance has announced that it will cease all services in NGN, with the platform suspending NGN withdrawals effective March 8. Following this date, any NGN balances in users’ Binance accounts will be converted to Tether (USDT).
Binance has urged its users to either withdraw their NGN holdings, trade their NGN assets, or convert them into cryptocurrencies before the discontinuation of these services. The exchange emphasized that the conversion rate would be determined based on the USDT/NGN trading pair’s average closing price on the Binance Spot market over the last seven days.
Moreover, Binance will halt NGN deposits immediately, signaling an end to such transactions from March 5, 2:00 pm UTC. The announcement also highlighted the removal of all trading pairs involving NGN on March 7 and the exclusion of NGN from Binance Pay’s list of supported payment options starting March 6. Additionally, Binance’s peer-to-peer platform had already delisted all NGN trading pairs in late February, further distancing itself from the Nigerian currency.
The decision to eliminate the Nigerian naira from Binance’s offerings comes amid a backdrop of intensified regulatory scrutiny within Nigeria. Recent developments saw the Central Bank of Nigeria’s governor raising concerns over crypto exchanges suspected of facilitating illicit transactions, with specific allegations directed at “suspicious flows” of funds within Binance. Furthermore, Nigeria’s National Security Adviser reportedly took action against Binance executives in Abuja by confiscating their passports – a move that underlines the gravity of the situation Binance finds itself in within Nigeria.
Adding to the exchange’s woes, the Nigerian House of Representatives Committee on Financial Crimes has summoned Binance CEO Richard Teng, giving him an ultimatum to address the committee’s concerns regarding alleged illicit operations. This heightened scrutiny reflects a broader regulatory reluctance towards the rapid pace of crypto adoption in Nigeria, a country that has emerged as a leading crypto economy globally. Despite Nigeria’s position as a frontrunner in crypto adoption, as evidenced by Chainalysis rankings and Google search trends, the regulatory landscape has been less than accommodating.
Two years ago, Nigeria’s central bank prohibited regulated financial institutions from serving crypto exchanges, a move that already signaled a challenging environment for crypto operations in the country. More recently, in February 2024, a presidential adviser advocated for a ban on Binance and other crypto trading platforms, further illustrating the hostile regulatory climate Binance has had to navigate.
