Binance announced intentions to discontinue NGN services amid Nigeria’s heightened crackdown on cryptocurrencies in response to concerns about currency manipulation.
Binance, a prominent crypto exchange, recently garnered considerable interest when it announced its intention to cease all Nigerian Naira (NGN) services in response to the increased scrutiny it received from the CEX in Nigeria.
In light of the restriction, as mentioned earlier on cryptocurrency exchanges in the mentioned West African country, Binance seems to have encountered heightened scrutiny due to its prior legal entanglements across the country.
However, in response to recent legal disputes with Nigerian regulatory bodies, the CEX has eventually announced its intention to suspend the services, to comply with the scrutiny it has been subjected to as a result of concerns regarding currency manipulation.
The announcement appears keenly anticipated by crypto market participants in Nigeria, as the country’s cryptocurrency landscape prepares for the potential repercussions of the CEX’s service interruption.
An Analysis Of Binance’s Statement
Binance issued a statement on March 5th, in which it advised its users to convert NGN into cryptocurrency, withdraw NGN, or engage in NGN asset trading before to the halt of NGN-related services by the company.
Binance’s announcement states that beginning March 8 at 08:00 UTC, any residual balances in user accounts will be automatically converted to USDT at a conversion rate specified in the firm’s statement.
Binance disclosed that it intends to discontinue NGN deposits after March 8, 14:00 UTC, and withdrawals of the cryptocurrency will be halted at 06:00 UTC on the same day.
Following March 8th, Binance additionally intends to facilitate the conversion of any residual NGN balances in users’ spot and fund wallets to USDT at a rate of 1 USDT to 1,515.13 NGN.
Meanwhile, beginning March 7, the CEX also intends to delist all extant NGN spot trading pairs.
All outstanding spot orders will be closed automatically when trading for the relevant pair ceases.
In addition to the previously mentioned service interruptions, the statement contained many other announcements that Binance Convert, Binance P2P, Auto Invest, and Binance Pay would experience disruptions on.
Binance Legal Saga In Nigeria
Following the recent assault on cryptocurrencies observed in Nigeria, Binance was subject to intense regulatory scrutiny.
Further demonstrating its dedication to collaborating with local authorities, the company demonstrated its efforts to ensure regulatory compliance on a national scale.
However, the organization quickly encountered a setback when executives from its Nigerian division were detained in the preceding regulatory crackdown.
Despite the presence of mounting rumors regarding a potential $10 billion fine for Binance, the Nigerian authorities denied any such statements, thereby exacerbating conjecture regarding the nation’s crypto enforcement.
Furthermore, Nigeria also criticized notable exchanges such as Kraken and Coinbase, mirroring the scrutiny that Binance encountered.
