Cryptocurrency giant Binance has announced the cessation of services related to the Nigerian naira (NGN) on its platform, citing regulatory pressure and accusations of currency manipulation. The move came after Nigerian authorities detained two Binance officials and imposed a hefty fine on the exchange.
Service Disruption and Balance Conversions
Effective 8:00 UTC on March 8, Binance will stop supporting the Nigerian Naira for spot trading, peer-to-peer transactions (P2P), Auto Invest, and Binance Pay. All remaining NGN balances in users’ accounts will be automatically converted to USDT stablecoin. To avoid automatic conversion, users are advised to withdraw their naira deposits before the deadline.
Read also: Nigeria’s SEC declares Binance illegal in the country
Legal Issues and Government Sanctions
The detention of two Binance officials by Nigerian authorities over alleged “illegal transactions” has further escalated tensions between the exchange and the government. In addition, the Nigerian government has levied a $10 billion fine on Binance, accusing it of involvement in manipulating the naira’s value.
The House of Representatives Committee on Financial Crimes in Nigeria recommended the arrest of Binance Holding Ltd’s CEO for alleged tax evasion and money laundering. The recommendation followed a motion by Rep. Isah Dogonyaro (APC- Jigawa state) during a public hearing in Abuja. Dogonyaro expressed dissatisfaction with the CEO’s failure to appear before the committee to address the allegations.
Company Response and Safety Concerns
In response to the allegations, Binance’s Legal Council, Mr. Senator Ihenyen, stated that the company had responded in writing to all accusations and was willing to provide further written answers if necessary. However, Ihenyen expressed concern over the safety of Binance officials in Nigeria following the recent arrests.
Binance increases African Currencies on its Cryptocurrency platform
Committee Decision and Future Steps
The committee, chaired by Rep. Ginger Obinna (LP-Abia), decided not to accept legal representation from Binance and recommended the arrest of Binance executives to answer questions on terrorism, money laundering, and other financial crimes. The committee thanked the petitioners for exposing financial crimes and exploitation of young Nigerians.
Binance’s decision to halt Nigerian Naira services reflects the growing regulatory challenges faced by cryptocurrency exchanges worldwide. The company’s legal battles in Nigeria highlight the need for clearer regulations and increased transparency in the cryptocurrency industry.
