The biggest cryptocurrency exchange in the world, Binance, has halted all of its Nigerian naira (NGN) services in response to increased regulatory scrutiny in the nation.
The ruling came as the Nigerian government accused Binance of manipulating foreign currency prices and requested substantial compensation.
Binance Accelerates Withdrawal From Nigerian Market
Binance is making a change! Which will Automatically Convert NGN Balances to USDT Starting This Friday
Heads up, Binance users in Nigeria! Starting this Friday and by March 8th at the latest, Binance will auto-convert any leftover Nigerian Naira (NGN) in your wallets to Tether (USDT) stablecoin.
In a major development for Nigerian crypto users, Binance is taking a two-pronged approach to halt Nigerian Naira (NGN) support. From coming march, all the NGN deposits and withdrawals including NGN spot trading will be delisted.
This includes, those that include Bitcoin and USDT.
The situation between Binance and Nigeria continues to spiral upwards in a tense standoff. First, Binance’s decision to remove all Nigerian Naira (NGN) trading pairs from its peer-to-peer platform on February 28th acted as a catalyst. In response, the exchange took a more drastic step, consequently suspending all services for the Nigerian naira. This move seemingly triggered a forceful reaction from the Nigerian government, which has since intensified its regulatory efforts against Binance. Furthermore, according to numerous media reports that emerged last week, the situation has taken a dramatic turn. Adding fuel to the fire, news of the arrest of two senior executives from Binance has heightened the tension.
Nigeria’s Crypto Scene Is Chaos
The Nigerian naira’s dramatic devaluation – a staggering 70% in recent months – has triggered a wave of economic hardship, including skyrocketing inflation. In response, the Nigerian government is tightening its grip on financial activities, casting a watchful eye on the cryptocurrency industry amid concerns about potential wrongdoings.
Fueled by these economic difficulties, the Nigerian House of Representatives Committee on Financial Crimes has summoned Binance and its CEO.
The committee had already called Binance’s managing director in, alleging that the company had funded terrorism, laundered money, evaded taxes, and committed other crimes. The committee’s goals include protecting Nigerian investors from “predatory practices” and fighting financial crimes.
The suspension of Binance’s services for the Nigerian naira represents a significant shift in the cryptocurrency market in that nation. Nigeria, one of the biggest cryptocurrency markets in the world, has seen a sharp increase in the use and trading of cryptocurrencies.
Challenges for Binance and Nigerian Crypto Enthusiasts Amid Regulatory Scrutiny
Market watchers closely eye how Nigeria’s crypto scene reacts to regulations. Binance exiting NGN services spotlights the growing risks and complexities of operating in a shifting regulatory landscape.
Bitcoin’s (BTC) record-breaking rally propelled the leading cryptocurrency to a new all-time high of $69,300 on Tuesday. This correction sent ripples through the cryptocurrency market, and Binance Coin (BNB), the exchange’s native token, wasn’t immune. Echoing Bitcoin’s pullback, BNB followed suit, experiencing a sharp decline of over 3% within a few hours. As of now, BNB is currently trading at $406.
