Binance shuts down Nigerian Naira service

Binance, the world’s leading cryptocurrency exchange by trading volume, has taken the decisive step of discontinuing all services related to the Nigerian Naira (NGN) on its platform. This announcement comes in response to the changing regulatory environment and Binance’s commitment to compliance and transparency in its operations.

Service outage schedule

NGN service interruptions will follow a specific schedule specified by Binance. The immediate action for users is to withdraw their NGN balance, trade NGN assets, or convert NGN to cryptocurrency before the service is completely phased out. Specifically, starting March 8, 2024, all remaining NGN balances will be converted to the stablecoin USDT, with Binance setting a fixed conversion rate based on the most recent average closing price of the USDT/NGN trading pair.

Last date for NGN trading

Binance has set clear deadlines for its users.

NGN deposits will be discontinued from 14:00 UTC on March 5, 2024.

Withdrawals will not be supported after March 8, 2024 06:00 UTC.

Conversion of NGN balances to USDT will begin at 08:00 UTC on March 8, 2024, with the specified exchange rate being 1 USDT = 1,515.13 NGN.

Impact on trading pairs and other services

Accordingly, Binance will delete all existing NGN spot trading pairs and remove NGN from Binance Convert. The platform’s P2P service has already decommissioned NGN trading pairs, and Binance Pay will also remove NGN from its supported payment options. Users participating in the Binance Automated Investment Plan through NGN will need to adjust their strategies accordingly.

enter nigerian government

Binance has been under increasing investigation by the Nigerian government for allegations of terrorist financing, money laundering, and currency manipulation.

Nigeria’s House of Representatives Financial Crimes Committee has summoned Binance CEO Changpeng Zhao to appear before the committee by March 4, 2024. The committee’s chairman, Ginger Onwusibe, issued an ultimatum to address allegations that the exchange was involved in illegal financial activities. The Commission expressed its commitment to combat financial crimes and protect Nigerian citizens from potential risks posed by foreign companies operating in Nigeria.

On March 1, 2024, Blockchain.News reported that the Nigerian government was seeking $10 billion in damages from Binance, claiming that the exchange had contributed to a 70% decline in the value of the naira by manipulating the exchange rate. The platform is also accused of facilitating money laundering and terrorist financing. Nigeria’s central bank reportedly detained two foreign executives and disclosed $26 billion in cryptocurrency trading volume.

However, both the Nigerian government and Binance denied these claims. In a statement, Binance said it had not received any official communication from Nigerian authorities regarding the alleged subpoena or the $10 billion damages claim. The exchange claimed that it operates in compliance with local laws and regulations and has a strong commitment to anti-money laundering and countering terrorist financing.AML/CFT) takes action.

Binance’s Commitment to the Cryptocurrency Ecosystem

Despite these changes, Binance expressed its gratitude to users for their continued support and pledged to remain committed to building a sustainable cryptocurrency ecosystem. The focus on transparency and growth within the regulatory framework is evident in Binance’s approach to the disruption process.

Advisories and Risk Warnings

Binance advises users to manage their assets accordingly and reminds users of the inherent volatility and risks associated with investing in digital assets. The exchange encourages informed decision-making and consultation with a financial advisor when necessary.

conclusion

Binance’s suspension of NGN services is a significant development for Nigerian users and reflects the broader challenges the cryptocurrency exchange faces in navigating the global regulatory waters. As Binance and other platforms adapt to these changes, the cryptocurrency community will likely see an increased emphasis on compliance and risk management across the industry.

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