Binance Halts Nigerian Naira Transactions, Compliance Concerns Intensify

Binance has announced its plans to halt its services involving the Nigerian Naira (NGN) due to heightened regulatory attention from authorities in Nigeria.

The crypto exchange said that it will remove all current NGN pairs by Thursday, and any remaining NGN balances will be transformed into USDT by Friday.

• According to the official blog post, Binance will halt NGN withdrawals starting from March 8, following which, any remaining NGN balances in users’ Binance accounts will be automatically changed to the Tether stablecoin.
• The platform urged users to withdraw, trade, or convert their NGN before services are discontinued.
• Additionally, all trading pairs associated with Nigeria’s local currency will be removed from Binance on March 7. Binance Pay, the exchange’s payment service, will also remove it from its list of supported payment options on March 6.
• Binance’s latest decision to entirely eliminate the Nigerian naira from its platform has surfaced amid increased regulatory pressure in the country.
• The Office of the National Security Adviser (ONSA) confirmed that two Binance executives were detained last month.
• Though not formally charged, allegations including currency manipulation, tax evasion, and illegal operations were speculated against them.
• Nigerian regulators have been probing the exchange, which lacks authorization to function within the West African country.
• The governor of the Central Bank of Nigeria expressed concerns about the involvement of crypto exchanges in illicit transactions in Nigeria, particularly highlighting “suspicious flows” of funds at Binance.
• With mounting suspicions regarding Binance’s purported illicit activities in the country, the Nigerian House of Representatives Committee on Financial Crimes also summoned Binance CEO Richard Teng to testify before the committee on the matter.