Binance Ends Naira Transactions, Set To Quit Nigerian Market

The conflict between Binance, a global crypto trading platform, and the Nigerian government has escalated with Binance’s decision to stop all transactions and trading in Nigeria’s currency starting from March 8.

In a statement released on Tuesday, Binance announced that it would also cease supporting withdrawals after Friday, with any remaining balances in the Nigerian currency automatically converted into Tether, a stablecoin pegged to the United States dollar.

Additionally, Binance stated that it would no longer support naira deposits after 14:00 UTC on Tuesday. The conversion rate for automatic conversions was set at $1 per N1,515.13. This move by Binance is likely a response to the regulatory challenges it has been facing in Nigeria, as the government has expressed concerns about the platform’s operations in the country.

The decision to stop trading in Nigeria’s currency and convert remaining balances into Tether indicates Binance’s attempt to navigate the regulatory environment in Nigeria while ensuring its users can still access their funds. However, it remains to be seen how this will impact Nigerian users of the platform and whether they will seek alternative trading options.

The ongoing face-off between Binance and the Nigerian government highlights the regulatory challenges facing the cryptocurrency industry globally. As governments around the world grapple with how to regulate cryptocurrencies, platforms like Binance are facing increasing scrutiny and pressure to comply with local laws and regulations.

It is unclear how this latest development will affect Binance’s operations in Nigeria and whether the platform will be able to resume full services in the country in the future. However, it creates the need for regulatory clarity and dialogue between cryptocurrency platforms and governments to ensure a fair and transparent regulatory environment for all parties involved.

“All spot trading pairs against the naira will be delisted on March 7 at 3:00 a.m. UTC. Open spot orders for these pairs will be automatically closed.”

“Binance Convert, Binance P2P, the exchange’s Auto Invest feature, and Binance Pay will also cease support for the naira at various dates and times,” the statement added.

It would be recalled that Binance has been on the federal government’s watchlist in recent weeks for alleged money laundering, illegal operations, financial terrorism, and tax evasion, amongst others.

Last week, Nigerian authorities detained two Binance senior executives on undisclosed charges as part of the crackdown.