Binance declared on 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.
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 also outlined a timeline for the cessation of
specific services related to the Nigerian naira. The exchange will cease to
support any deposits of 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 largest cryptocurrency markets
globally, has been grappling with economic challenges, contributing to the
significant depreciation of the Nigerian naira. Over the past few months, the
currency has witnessed a staggering loss of 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.
Binance declared on 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.
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 also outlined a timeline for the cessation of
specific services related to the Nigerian naira. The exchange will cease to
support any deposits of 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 largest cryptocurrency markets
globally, has been grappling with economic challenges, contributing to the
significant depreciation of the Nigerian naira. Over the past few months, the
currency has witnessed a staggering loss of 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.