Amid escalating tensions with Nigerian authorities, cryptocurrency exchange – Binance – has announced it will discontinue all services related to the Nigerian naira currency starting this week.
In a statement posted on its website Tuesday, Binance advised Nigerian users to withdraw any remaining naira balances from their accounts or convert them to the stablecoin Tether (USDT) by March 8. After that date, Binance said it will automatically convert any outstanding naira balances to USDT at a rate of 1 USDT = 1,515.13 NGN.
The move comes as Binance faces allegations from the Nigerian government of enabling illegal currency speculation and manipulation that has contributed to the naira’s plummeting value. Last week, Nigerian security forces detained two senior Binance executives, whose current status remains unclear.
Nigeria is one of the world’s largest markets for peer-to-peer cryptocurrency trading, with over $56 billion in transactions between July 2022 and June 2023 according to blockchain data platform Chainalysis. However, Nigerian authorities have intensified efforts to crack down on crypto exchanges they believe are enabling a black market for foreign currency amid a severe dollar shortage.
In addition to blocking access to Binance’s website, the Nigerian government has taken actions against bureau de change operators and limited cash withdrawals at banks and ATMs in an attempt to stabilize the naira. The currency has lost nearly 70% of its value against the dollar over the past several months.
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By discontinuing naira services, Binance appears to be yielding to pressure from the Nigerian government’s campaign against crypto platforms accused of exacerbating the foreign exchange crisis. The company stated that after March 5 it will no longer accept naira deposits, and withdrawal support will end on March 8.
While Nigeria represents a significant market, Binance likely aims to avoid further escalation with authorities that could jeopardize its broader operations across Africa and globally. The exchange did not provide details on how many Nigerian users will be impacted.