Binance plans to halt all Nigerian naira transactions by March 8th

Crypto News– Binance, a leading global cryptocurrency exchange, has made the decision to withdraw from the Nigerian market, announcing the complete cessation of all services involving the local fiat currency, the Nigerian naira (NGN).

Binance plans to halt all Nigerian naira transactions by March 8th

In an official announcement on March 5th, Binance revealed its plan to halt NGN withdrawals after March 8th. Following this date, any remaining NGN balances in users’ Binance accounts will be automatically converted to the Tether (USDT) stablecoin.

Users are advised by the exchange to withdraw NGN, trade their NGN assets, or convert NGN into crypto before the discontinuation of NGN services. The conversion rate will be determined based on the average closing price of the USDT/NGN trading pair on Binance Spot over the last seven days.

Additionally, NGN deposits will be immediately suspended by Binance, effective from 2:00 pm UTC on March 5th. All trading pairs involving NGN are scheduled to be removed from the platform on March 7th. Furthermore, Binance Pay, the exchange’s payment service, will eliminate NGN from its list of supported payment options on March 6th.

The decision to remove NGN support from Binance comes amidst heightened regulatory scrutiny in Nigeria. The governor of the Central Bank of Nigeria raised concerns on February 27th, alleging that crypto exchanges in Nigeria were involved in illicit transactions, including “suspicious flows” of funds at Binance.

In a related development, Nigeria’s National Security Adviser reportedly confiscated the passports of two Binance executives in Abuja, the capital of Nigeria. This action was taken as part of the investigation into alleged illicit operations by Binance in the country.

In response to these allegations, the Nigerian House of Representatives Committee on Financial Crimes summoned Binance CEO Richard Teng to appear before the committee. The committee’s chair issued an ultimatum to Binance management to appear before March 4th.

This move by Binance reflects the escalating regulatory challenges faced by cryptocurrency exchanges operating in Nigeria, prompting the exchange to reevaluate its presence in the market.