Binance, a leading cryptocurrency exchange worldwide, has announced its decision to discontinue all services involving the Nigerian Naira (NGN). This action is a response to actions taken by the Nigerian state and demonstrates Binance’s continuous efforts to streamline operations and adhere to regulatory requirements in Nigeria. Binance has recommended that users take necessary steps before the deadlines to prevent any disruptions to their accounts.
Starting from March 8, 2024, at 08:00 (UTC), any remaining NGN balances in users’ accounts will be automatically converted to USDT (Tether) at a conversion rate of 1 USDT = 1,515.13 NGN. The conversion rate is determined based on the average closing price of the USDT/NGN trading pair on Binance Spot over the previous seven days.
The conversion process may require up to 24 hours or longer according to Binance, following which USDT tokens will be deposited into users’ Spot wallets. In cases where users hold less than 0.00000001 USDT equivalent in NGN, they will each receive 0.00000001 USDT in their Spot wallets post-conversion.
The company has announced that it will no longer support NGN deposits after March 5, 2024, at 14:00 (UTC). Additionally, withdrawals of NGN will not be possible after March 8, 2024, at 06:00 (UTC). Users are urged to finalize any pending deposits or withdrawals before these deadlines to avoid inconvenience.
Binance will delist all current NGN spot trading pairs, such as BTC/NGN and USDT/NGN, on March 7, 2024, at 03:00 (UTC). Any open spot orders linked to these trading pairs will be automatically closed when trading stops. Users should ensure they have not selected “Hide Small Balances” in any of their wallets to see their assets post-trading cessation.
Binance Convert will delist NGN and all corresponding pairs on March 7, 2024, at 02:00 (UTC). Earlier, on February 28, 2024, at 15:00 (UTC), Binance P2P had already delisted all NGN trading pairs. Following suit, Binance Auto-Invest will delist NGN after March 6, 2024, at 03:00 (UTC).
Users are advised to remove their plans before this date to avoid any issues with recurring cycles. Moreover, NGN will be removed from the list of supported payment options on Binance Pay on March 6, 2024, at 03:00 (UTC).
Despite proceeding with this move, they express gratitude for the ongoing support of their users. The exchange reiterates its commitment to developing the crypto ecosystem with a focus on transparency and fostering long-term, sustainable growth.
This is coming following the Nigerian government’s decision to block access to cryptocurrency websites such as Binance, the arrest of two Binance executives, and the issuance of arrest warrants by the House of Representatives for top executives of the leading cryptocurrency exchange.
https://twitter.com/Cryptotvplus/status/1764668461907841492
Nigeria has taken these measures in response to the continuous depreciation of the Naira to unprecedented lows. The government believes that platforms like Binance and similar cryptocurrency exchanges have contributed to the challenges faced by Nigeria’s foreign exchange market.
In a recent statement, Governor Yemi Cardoso of the Central Bank of Nigeria (CBN) revealed that over $26B had passed through Binance in the past year. This statement is similar to what the former Governor of the Central Bank, Godwin Emefiele said about cryptocurrency wherein he called it opaque and money out of thin air shortly before restricting cryptocurrencies trade facilitation via the financial institutions in the country.
In response to the moves by the Government, a group of blockchain associations has come together to address the actions of the government warning if “Nigeria’s present action may—once again—gradually push virtual assets adoption and transactions underground, a place that largely impairs efficient & effective supervision, monitoring, and investigations”.
The group also called for responsible regulation of cryptocurrencies in Nigeria and has noted its commitment to setting up a code of conduct to enable or drive a safe environment for crypto and crypto players in the country.
