Leading cryptocurrency exchange Binance has announced its decision to discontinue all transactions involving the Nigerian Naira (NGN) on March 8.
The firm expects users to withdraw, trade or convert NGN into cryptocurrencies before the service is discontinued by the weekend.
Binance noted that after the deadline, any remaining NGN in any user’s account will be converted to Tether (USDT).
The exchange further assured its Nigerian customers of a seamless transition process and has outlined steps to help facilitate the withdrawal of funds tied to the NGN from the platform.
“Please note that the conversion rate is calculated based on the average closing price of the USDT/NGN trading pair on Binance Spot in the last seven days,” the firm said.
Furthermore, Binance Pay, the exchange’s payment service, will exclude NGN from the list of supported payment options on the 6th of March.
Recall that the company already delisted the NGN from its peer-to-peer service in late February.
In response to the news, some Nigerian users have expressed their frustration, calling on the exchange to reconsider its decision and seek alternative means to resolve the challenges in its Nigerian operations.
The news on the total removal of the NGN from Binance comes as the firm faces substantial regulatory scrutiny in Nigeria.
Reportedly, Nigeria’s National Security Adviser in Abuja, the nation’s capital, seized the passports of two Binance executives, citizens of the United States and the United Kingdom.
On February 27, the governor of the Central Bank of Nigeria (CBN) contended that cryptocurrency exchanges in Nigeria were under suspicion for processing and handling illicit transactions.
Amid suspicions of alleged illicit activities by Binance in the country, the Nigeria House of Representative Committee on Financial Crimes has called for the exchange’s CEO, Richard Teng, to be present before the committee for questioning. The committee chair has also issued an ultimatum to Binance’s management to appear on or before March 4.
Meanwhile, Nigeria is one of the fastest-growing global crypto economies as the country’s economy and local currency continue to fall.
In September 2023, leading crypto intelligence firm Chainalysis ranked Nigeria as the second-highest country globally regarding crypto adoption.
In August 2022, Nigeria topped the list as the most crypto-obsessed country globally regarding the volume of Google searches for “cryptocurrency” or “buy crypto.”
