Cryptocurrency exchange giant, Binance, has revealed plans to terminate all services related to the Nigerian naira (NGN) following accusations of exploiting the country’s currency, contributing to its devaluation. The platform is also entangled in serious allegations, including terrorism financing, money laundering, and tax evasion.
Nigeria, hosting one of the world’s largest peer-to-peer crypto markets, witnessed crypto transactions reaching $56.7 billion between July 2022 and June 2023, according to Chainalysis. However, the controversy surrounding Binance has prompted the company to advise users to withdraw NGN, trade their NGN assets, or convert NGN into cryptocurrency.
In a statement released on Tuesday, Binance outlined the discontinuation process, stating, “Users are encouraged to withdraw NGN, trade their NGN assets or convert NGN into crypto prior to the discontinuation of these NGN services.”
The key timelines mentioned in the statement are as follows:
– Binance will not support NGN deposits after 2024-03-05 14:00 (UTC).
– NGN withdrawals will not be supported after 2024-03-08 06:00 (UTC).
– After 2024-03-08 08:00 (UTC), remaining NGN balances in users’ accounts will be automatically converted to USDT at a conversion rate based on the average closing price of the USDT/NGN trading pair in the last seven days.
Notably, the conversion may take up to 24 hours or longer, and USDT tokens will be credited to users’ Spot wallets thereafter. The company assured users that if they hold less than 0.00000001 USDT worth of NGN, they will receive 0.00000001 USDT in their Spot wallets after the conversion.
Last week, The PUNCH reported the alleged detention of two senior executives of Binance by the Nigerian government amid efforts to curb speculation on the naira and crack down on cryptocurrency exchanges. The government had blocked the online platforms of Binance and other crypto firms to prevent what it considered market manipulation and illicit fund movements.
On Monday, the foreign firm’s executives were expected to appear before the House Committee on Financial Crimes; however, they sent their lawyers to represent them instead. The situation surrounding Binance adds fuel to the ongoing global debate on cryptocurrency regulations and its intersection with traditional financial systems.
