Lagos, Nigeria – Leading cryptocurrency exchange Binance has announced that it will be discontinuing services in Nigeria amid an ongoing regulatory crackdown. In a notice to users on March 5, Binance said it would no longer support deposits or withdrawals of Nigerian naira (NGN) and advised traders to withdraw any funds held on the platform.
Any remaining NGN balances will be automatically converted to US dollar tether (USDT) stablecoin at a rate of 1 USDT = 1,515.13 NGN. Spot trading, P2P trading, and payment functions involving NGN will also be terminated once the deadlines for deposits and withdrawals have passed on March 5th and 8th respectively.
The move comes after weeks of rising tensions with Nigerian authorities. Earlier reports indicated that regulators had demanded $10 billion in compensation from Binance, accusing the exchange of manipulating the naira exchange rate. However, both Binance and presidential advisers have denied the accuracy of that specific claim.
Nevertheless, it’s clear that regulators want more oversight of cryptocurrency trading in Nigeria. The House Committee on Financial Crimes has summoned Binance CEO Changpeng Zhao to testify on allegations of money laundering and terrorist financing through the platform. Additionally, several Binance executives were arrested in Nigeria last week.
Obinna Iwuno, President of the Blockchain Association of Nigeria, told local media that traders on centralized exchanges like Binance cannot remain anonymous. As the exchange is not licensed to operate in Nigeria, there are no rules formally binding it to regulatory demands. However, Iwuno stated that traceability tools could still be used to track suspicious transactions.
Binance’s exit leaves a void in Nigeria’s cryptocurrency market, one of the largest in Africa. However, it also demonstrates regulators’ growing efforts to exercise more control over digital asset activities in the country. How other international exchanges will respond to this tougher supervisory environment remains to be seen.