Binance declared today (Tuesday) that it will terminate all Nigerian naira services amidst an escalating legal battle with the Nigerian government. The move comes as a blow to users and investors in Nigeria, a country that has emerged as one of the world's major cryptocurrency markets.
Timeline for Cessation of Naira Services by Binance
According to an official update on Binance's website, effective this Friday, all remaining naira balances in user accounts will be automatically converted to Tether, a popular cryptocurrency stablecoin pegged to the US dollar.
Binance has outlined a timeline for the cessation of specific services related to the Nigerian naira. The exchange will cease to support any deposits from Naira after 2 p.m. UTC on Tuesday. Additionally, withdrawals of the currency will no longer be facilitated after 6 a.m. UTC on Friday, as stated in the official announcement.
The legal dispute between Binance and the Nigerian government has intensified in recent weeks, with the government demanding nearly $10 billion in compensation from the cryptocurrency firm. Accusations include manipulation of foreign exchange rates through currency speculation and rate fixing. Last week, reports emerged that two senior executives of Binance were arrested in Nigeria, further complicating the already strained relationship.
Nigeria, as one of the world's largest cryptocurrency markets, has been grappling with economic challenges, contributing to the significant depreciation of the Nigerian naira. Over the past few months, the currency has plummeted by almost 70% of its value, exacerbated by a broader currency crisis and surging inflation in Africa's largest economy.
BREAKING: Binance leaves Nigeria, suspends all naira services https://t.co/tDHJtMnjds
— The Nation Nigeria (@TheNationNews) March 5, 2024
Allegations of Currency Manipulation and Unpatriotic Behavior
Bayo Onanuga, an adviser to Nigeria’s President Bola Tinubu, stirred controversy by urging a ban on cryptocurrency platforms like Binance and KuCoin in Nigeria, as reported by Finance Magnates. Onanuga accused these platforms of manipulating Nigeria's fiat currency, the naira, leading to its decline in the forex market.
He called on the EFCC and CBN to intervene, alleging unpatriotic behavior among users. Despite regulatory scrutiny, Binance defended its market-based operations, denying efforts to influence Nigeria's currency pricing. Onanuga's stance underscores the ongoing debate surrounding cryptocurrency regulation and its impact on national currencies.
This article was written by Tareq Sikder at www.financemagnates.com.
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