- Binance is ceasing support for the Nigerian naira (NGN) by March 8th, 2024, including halting deposits starting March 5th and disabling withdrawals two days later.
- Binance’s exit appears to be due to increasing regulatory pressure and investigations from Nigerian authorities regarding its unregulated crypto operations in the country.
- With Binance holding a dominant position in enabling crypto adoption in Nigeria, regulators likely aim to restrict cryptocurrency usage from going fully mainstream by targeting Binance.
Binance, the world’s largest crypto exchange, has announced it will cease supporting the Nigerian naira (NGN) by March 8, 2024. This decision comes amid rising scrutiny from Nigerian regulators over Binance’s unregulated crypto operations within the country’s borders.
Naira Support Ending Quickly
According to a March 5 blog post, Binance will halt NGN deposits starting at 1400 UTC. Withdrawal functionality will also be disabled just two days later at 0600 UTC. Any NGN still in Binance accounts after 0800 UTC on March 8 will be forcibly converted to USDT at a rate of 1 USDT to every ₦1,515. Binance cited the average USDT/NGN closing price over the past seven days as its conversion benchmark.
Regulatory Pressure Forces Exit
Binance’s abrupt exit appears directly linked to Nigerian authorities ramping up investigations into its unregulated crypto operations this year. While Nigeria has not banned cryptocurrencies outright, regulators have demonstrated clear distrust towards crypto gaining mainstream adoption as an alternative to the naira.
As the most trafficked exchange globally, Binance held a dominant position in enabling this growth. By forcing Binance to surrender its naira foothold, regulators likely aim to stifle wider adoption before it truly flourishes. With Nigerians trading millions in crypto each month, restricting Binance limits cryptocurrencies from going fully mainstream.
The Future of Nigerian Crypto
It remains to be seen whether Nigeria will outright criminalize crypto usage next. For now, traders will have to take their business elsewhere or risk getting caught in intensifying regulation.
