Binance, the leading cryptocurrency exchange, has announced the discontinuation of its naira (NGN) services in response to heightened regulatory scrutiny in Nigeria. The decision, outlined in a blog post today, follows recent regulatory actions and restrictions imposed by the Nigerian government on both local and foreign cryptocurrency exchanges, including Binance.
As part of the discontinuation process, Binance will delist any existing NGN spot trading pairs by Thursday, March 7. Users are advised to withdraw, trade, or convert their NGN assets into crypto before the service discontinuation. Any remaining NGN balances in users’ spot and funding wallets will be automatically converted to USDT on Friday, March 8.
Furthermore, by Wednesday, March 6, Binance will delist NGN services on its auto-invest tool and remove the currency from the list of supported payment options on Binance Pay.
The decision to halt NGN services comes amidst reports of regulatory actions by the Central Bank of Nigeria, which accused Binance of facilitating illicit financial flows amounting to $26 billion. The regulatory scrutiny has led to accessibility challenges for users on the Binance platform.
Recent developments also include the reported detention of two Binance officials in Nigeria. The officials were allegedly held because Binance was operating illegally in Nigeria, although formal charges have not yet been filed.
While reports have surfaced regarding Nigeria’s demand for nearly $10 billion in compensation from Binance, both parties have refuted these claims. The legal dispute between Binance and the Nigerian government remains unresolved, with Nigeria’s parliament threatening to issue a warrant of arrest for Binance executives.
In light of these developments, Binance CEO Richard Teng has been summoned to provide explanations regarding investigations into alleged involvement in money laundering and terror financing.