Binance Suspends Naira Transactions Due to Nigerian Regulatory Investigation

Binance to Halt Naira Services Amidst Regulatory Pressure in Nigeria

In light of heightened regulatory scrutiny in Nigeria, Binance, the world’s largest cryptocurrency exchange, has announced its decision to discontinue naira (NGN) services. The exchange will begin the process of delisting existing NGN spot trading pairs by Thursday, March 7, as stated in a recent blog post. Users are advised to withdraw, trade, or convert their NGN assets into cryptocurrency before the service is fully discontinued. Any remaining NGN balances in users’ spot and funding wallets will be automatically converted to USDT on Friday, March 8.

Additional Service Changes

In addition to the spot trading pair delistings, Binance will also remove NGN services from its auto-invest tool and eliminate the currency from the list of supported payment options on Binance Pay by Wednesday, March 6.

Regulatory Actions and Accessibility Issues

This development comes on the heels of recent regulatory actions taken by the Nigerian government, which has imposed restrictions on both local and foreign cryptocurrency exchanges, including Binance. As a result, users have encountered accessibility challenges when attempting to access the Binance website.

Central Bank of Nigeria’s Accusations

Last week, the Central Bank of Nigeria, the country’s apex bank, accused Nigeria of losing out on taxes from unregistered crypto exchanges. The bank also alleged that Binance facilitated “illicit flows from sources and users who we cannot adequately identify” amounting to $26 billion.

Detention of Binance Officials

Following the accusations, two Binance officials were reportedly detained after being invited to Nigeria to discuss the regulatory restrictions. Bloomberg reported that the officials were held because Binance was operating illegally in Nigeria. The detained officials may face charges related to currency manipulation, tax evasion, and illegal operations, although formal charges have not yet been filed.

Ongoing Legal Dispute and Allegations

Reports suggest that the Nigerian government has intensified its scrutiny of Binance, alleging the platform’s involvement in manipulating foreign exchange rates through currency speculation and rate fixing. The government allegedly requested nearly $10 billion in compensation, although both Nigeria and Binance have refuted these claims regarding the fine.

The legal dispute between Binance and Nigeria, Africa’s top crypto market, remains unresolved. Nigeria’s parliament has further complicated the situation by threatening to issue a warrant of arrest for the company’s executives. Binance CEO Richard Teng has been summoned to provide explanations regarding investigations into alleged involvement in money laundering and terror financing, as reported by local sources.