Binance Halts Nigerian Naira Services Amid Regulatory Scrutiny
Binance, the popular cryptocurrency exchange, has announced that it will suspend its services involving the Nigerian Naira (NGN) due to increased regulatory attention from authorities in Nigeria. The move comes as Binance faces allegations of currency manipulation, tax evasion, and illegal operations in the country. Nigerian regulators have been investigating the exchange for operating without authorization in the West African nation. As a result, Binance has decided to remove all current NGN pairs and halt NGN withdrawals. Any remaining NGN balances will be automatically converted to the Tether stablecoin.
Withdrawals and Balances
- Binance will halt NGN withdrawals starting from March 8.
- Any remaining NGN balances in users’ Binance accounts will be automatically changed to Tether (USDT) by Friday.
- Users are encouraged to withdraw, trade, or convert their NGN before the services are discontinued.
Removal of Trading Pairs and Payment Service
- All trading pairs associated with the Nigerian Naira will be removed from Binance on March 7.
- Binance Pay, the exchange’s payment service, will also remove support for the Nigerian Naira on March 6.
Regulatory Pressure and Detentions
- The decision to eliminate the Nigerian Naira from its platform comes amid increased regulatory pressure in Nigeria.
- The Office of the National Security Adviser (ONSA) confirmed that two Binance executives were detained last month.
- While not formally charged, these executives faced allegations of currency manipulation, tax evasion, and illegal operations.
- The Central Bank of Nigeria’s governor expressed concerns about the involvement of crypto exchanges in illicit transactions, specifically mentioning “suspicious flows” of funds at Binance.
- The Nigerian House of Representatives Committee on Financial Crimes summoned Binance CEO Richard Teng to testify regarding the allegations.
Hot Take: Binance Faces Regulatory Challenges in Nigeria
Binance’s decision to halt its services involving the Nigerian Naira reflects the increasing regulatory scrutiny faced by the exchange in Nigeria. Allegations of currency manipulation, tax evasion, and illegal operations have put Binance in the spotlight. Nigerian regulators have been investigating the exchange for operating without authorization in the country. The detention of two Binance executives further fueled suspicions. As a result, Binance has taken the step to remove all NGN pairs and halt NGN withdrawals. This move aims to comply with regulatory requirements and address concerns about illicit transactions.
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