Binance, recognized as the largest cryptocurrency exchange globally, recently announced its decision to withdraw from the Nigerian market. The measure involves the discontinuation of all services related to the local currency, the Nigerian Naira (NGN), marking a significant moment for both the company and local users. Starting March 8, Binance will no longer allow NGN withdrawals, directing NGN holders to convert their balances to the Tether stablecoin before the suspension.
The platform suggests that Nigerian users withdraw their NGN funds, trade any remaining NGN assets, or convert them to cryptocurrencies before deactivating NGN-related services. The NGN to Tether conversion rate will be based on the average closing price of the USDT/NGN trading pair on Binance Spot over the last seven days to ensure a fair and transparent transition for its users.
Additionally, Binance immediately halted NGN deposits and announced the removal of all NGN trading pairs from the platform by March 7th. Payment service Binance Pay will also follow this measure, excluding NGN from its payment options starting March 6th.
This move by Binance occurs in a context of increasing regulatory pressure in the country. Nigerian authorities, including the governor of the Central Bank of Nigeria, have expressed concerns about illicit transactions and suspicious fund flows involving cryptocurrency platforms, specifically citing Binance. This concern resulted in the confiscation of the passports of two Binance executives in Abuja and the subsequent summons of Binance CEO Richard Teng by the Nigerian House of Representatives Financial Crimes Committee.
Additionally, in a surprising move, the Nigerian government imposed a $10 billion fine on Binance as part of efforts to stabilize the local currency and respond to concerns about forex market manipulation and illicit fund movements. This decision highlights tensions between Nigeria’s rapidly expanding crypto economy and local regulators, who have taken an increasingly cautious stance towards the adoption of cryptocurrencies in the country.
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The views and opinions expressed by the author, or anyone mentioned in this article, are for informational purposes only and do not constitute financial, investment or other advice. Investing in or trading cryptocurrencies carries a risk of financial loss.
Source: https://portalcripto.com.br/binance-encerra-operacoes-na-nigeria/
