Crypto exchange Binance said it would discontinue all services associated with the Nigerian local fiat currency, Naira (NGN), in a phased approach this week, according to a Mar. 5 statement.
The Richard Teng-led crypto platform stated that its Nigerian users would not enjoy several NGN-related services, including deposits, withdrawals, conversions, spot trading, P2P, Auto-invest, and Binance Pay.
While NGN deposits have ceased immediately, users have until Mar. 8 to withdraw their NGN assets. Post-deadline, Binance intends to automatically convert the remaining NGN balance to USDT at a fixed rate of 1 USDT for $1,515.13, the average closing price over the last seven days.
Moreover, Binance will delist all NGN spot trading pairs and automatically close all open trading positions by Mar. 7.
The exchange did not provide an official reason for its decision. Also, it has yet to respond to CryptoSlate’s request for additional commentary as of press time.
Binance’s woes in Nigeria
Binance’s decision to cease NGN services can be attributed to its issues with the Nigerian government over the past weeks.
The Nigerian authorities have accused the exchange of exacerbating Nigeria’s foreign exchange challenges by usurping the Central Bank of Nigeria’s role in setting exchange rates.
While the crypto platform denies this allegation, the Nigerian government has initiated a crackdown on the firm, including a blockade of its website. In addition, the government reportedly detained two Binance staff members, and their passports were seized.
Meanwhile, recent reports have revealed that the Nigerian government is contemplating imposing a $10 billion fine on Binance for its alleged infractions. However, Bayo Onanuga, an aide to the Nigerian President, denied these reports, claiming that the authorities have yet to conclude the actions they would take on the exchange.
Moreover, Nigerian lawmakers recently summoned Binance CEO Richard Teng to appear before a committee over the exchange’s alleged role in money laundering and terrorism financing.