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Binance Halts all Naira Transactions
By Oluchukwu Ikemefuna
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Beginning on March 8, 2024, Binance Nigeria plans to stop offering any services in naira, the local currency of the nation. The decision was made public on the cryptocurrency platform’s website on Tuesday. Before the deadline, the company asked its users to either withdraw their naira funds, trade their naira assets, or convert them to cryptocurrency.
The announcement states that starting on March 8, users’ remaining NGN balances in their Binance accounts will be automatically converted to Tether stablecoin.
The statement said, “You can still use services and products for other cryptocurrencies that are available; this only affects NGN services.”
Binance Operation In Nigeria
Binance said, “Please be aware that the conversion rate is determined using the average closing price of the USDT/NGN trading pair on Binance Spot over the previous seven days.”
Additionally, Binance announced that it would immediately stop accepting naira deposits. As a result, on Tuesday, March 5, 2024, after 2:00 PM UTC, transactions will not be supported.
According to the company, all naira-related trading pairs will be removed from the platform on March 7, 2024. The company also announced that on March 6, 2024, naira will no longer be accepted as a form of payment on Binance Pay. It also mentioned that in late February, all NGN trading pairs were removed from the platform’s peer-to-peer exchange.
Nigerian Government Monitors Binance Operations
The Nigerian government is currently closely examining Binance due to claims that it violated the nation’s foreign exchange (FX) laws. President Bola Tinubu’s special adviser, Bayo Onanuga, demanded a ban on Binance and other cryptocurrency platforms on February 21, 2024, claiming that they were manipulating exchange rates and interfering with the Central Bank of Nigeria’s (CBN) authority.
In addition, CBN governor Olayemi Cardoso disclosed that $26 billion had come through Binance Nigeria in a single year from unidentified sources, highlighting the necessity of working with regulatory organizations to guarantee openness and avoid manipulation in the foreign exchange market.
Binance Fined For its Operation In Nigeria
The Federal Government demanded nearly $10 billion in compensation from Binance last week for using its platform to manipulate foreign exchange rates through rate-fixing and currency speculation. As part of the crackdown, two senior executives of Binance were also detained by Nigerian authorities on unidentified charges.
Their local attorney stated before a parliamentary committee on Monday that they were still being held in custody.
Similar difficulties have also been faced by Binance abroad. They have run into problems with different regions’ regulatory requirements and banking partners. Still, they are working to find answers and make their services available all over the world.
The cryptocurrency platform has been collaborating closely with partners and local authorities to resolve these issues and guarantee regulatory compliance. Their dedication lies in offering a dependable and safe platform for cryptocurrency transactions across the globe.
