In a move signalling a deepening rift with Nigerian authorities, Binance, the world’s largest cryptocurrency exchange, announced the suspension of all Naira-related services effective March 8th. This decision comes amidst a regulatory crackdown on the company’s operations in Nigeria.
According to a statement released on its app, Binance will halt Naira deposits starting March 5th, followed by the termination of Naira withdrawals on March 8th. Any remaining Naira balances in user accounts will be automatically converted to Tether (USDT), a stablecoin pegged to the US dollar. Additionally, Binance will delist all Naira trading pairs and remove Naira from its payment solution, Binance Pay.
This escalation follows a series of events targeting Binance in Nigeria. Last week, Nigerian authorities detained two Binance executives upon their arrival in the country, shortly after the government banned access to Binance’s website. The Nigerian government accused Binance of facilitating “illegal transactions” and reportedly imposed a hefty $10 billion fine, a claim Binance has vehemently denied.
The crackdown intensified further two weeks ago when Binance restricted peer-to-peer (P2P) transactions involving the USDT/NGN pair. This marked the second time in six months that Binance limited trading for Nigerian users. In the previous instance, the exchange disabled the “sell” function and restricted the “buy” option to a fixed price.
These developments come as a surprise after the Central Bank of Nigeria (CBN) seemingly softened its stance on cryptocurrency companies last year. However, recent actions by regulators suggest a shift in policy, leaving the future of cryptocurrency in Nigeria uncertain.