The world’s biggest cryptocurrency exchange firm, Binance, announced on Monday, November 7, 2022, that it will now allow naira deposits and withdrawals on the exchange.
Through this, Nigerian traders can deposit and withdraw the local currency from their Binance Wallets.
Adding a fiat gateway for the naira is one of the necessary steps to foster the adoption of cryptocurrency in the country, according to Binance.
This fiat gateway will lessen the problems often encountered by merchants and investors in Nigeria while trading crypto.
Announcing this development on the exchange, Binance stated, “Fellow Binancians, Binance is pleased to announce that it has added a fiat gateway for Nigerian Naira (NGN) as part of Binance’s mission to increase the adoption and mainstream accessibility of crypto.”
Security measure
To prevent the perpetration of fraud through this fiat gateway, Binance has made compulsory the completion of KYC in order to make NGN deposits and withdrawals on the exchange.
CBN and cryptocurrency
The Central bank of Nigeria had in February 2021 prohibited commercial banks from facilitating payments for cryptocurrency platforms operating in the country. As a result of this order, Binance suspended deposits and withdrawals in Nigerian currency, Naira. Binance has to do this because its payment partners complied with the directive of the CBN.
Although Binance suspended deposits and withdrawals in Naira, it promised to work out a procedure allowing Nigerian customers to continue using the service. Binance announced this alternative procedure 21 months after the initial suspension.
This development is not quite surprising because according to business insider, Nigeria is Africa’s biggest crypto market. This is after a heavy regulation has been imposed by the Central Bank. The active crypto participation in the country, which Binance has also attested to, has made the exchange roll out an alternative that will facilitate the withdrawal and deposit of the country’s currency.
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