Binance has announced its decision to withdraw from the Nigerian market, ceasing all services associated with the Nigerian naira (NGN). Starting from March 8, NGN withdrawals will be suspended, with remaining NGN balances automatically converted to the Tether stablecoin.
To facilitate a seamless transition, Binance urges its Nigerian users to withdraw their NGN funds, trade their NGN assets, or convert them to cryptocurrencies before the discontinuation of NGN services. The conversion rate from NGN to Tether will be determined based on the average closing price of the USDT/NGN trading pair on Binance Spot over the preceding seven days.
In addition to suspending NGN deposits immediately, Binance will remove all trading pairs involving NGN from its platform on March 7. Binance Pay, the exchange’s payment service, will also remove NGN from its list of supported payment options on March 6.
The decision to exit the Nigerian market follows increased regulatory scrutiny within the country, particularly concerning illicit transactions and suspicious fund flows at crypto exchanges like Binance. The Nigerian government’s actions against Binance, including imposing a hefty $10 billion fine, aim to address concerns about the stability of the nation’s local currency and alleged forex market manipulation.
Despite Nigeria’s significant crypto adoption and enthusiasm, regulators have shown reservations about the rapid growth of the crypto industry. Calls for banning platforms like Binance have surfaced, echoing previous regulatory restrictions imposed by Nigeria’s central bank on crypto-related activities.
Overall, Binance’s withdrawal from the Nigerian market underscores the challenges posed by regulatory pressures in certain jurisdictions, highlighting the complexities surrounding crypto operations in evolving regulatory landscapes.