Binance Removes NGN Permanently From Its Platform

The largest cryptocurrency trading platform, Binance has come again with another revelation: it will shut down all naira services starting on March 8, 2024. This development came days after the cryptocurrency trading platform had an issue with Nigerian regulators about how its platform had caused the naira to plummet against the dollar. However, the firm didn't state how long this shutdown may last, but starting from Friday, March 8, you can no longer trade on the platform with naira either by exchange or trading.

The company released a brief to its users and stated that it will convert existing NGN balances in users' accounts to USDT. Remember that USDT has skyrocketed for the last three weeks following speculators' moves to devalue the naira for selfish purposes.

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In a statement released Tuesday, Binance said, "Users are encouraged to withdraw NGN, trade their NGN assets, or convert NGN into crypto before discontinuing these NGN services."

"Withdrawals of naira will be stopped by March 8, 2024, after which they will be converted to USDT at N1,515.13/USDT. "Please note that the conversion rate is calculated based on the average closing price of the USDT/NGN trading pair on Binance spot in the last seven days," it said.

Binance also stated that the conversion may last up to 24 hours (1 day). It also highlighted that its auto invest will delist the NGN after March 6, and naira will be removed from its list of supported payment options on Binance Pay the same day.

"We thank you for your support as we continue to build the crypto ecosystem in a way that promotes transparency and long-term sustainable growth," the crypto firm added.

Binance's move to delist the NGN from its platform follows efforts by the Nigerian government to cushion the foreign exchange market. Currency regulators have reported that the cryptocurrency has manipulated and devalued the country's local currency. The naira was announced in 2020 as the first African currency eligible for peer-to-peer trading.

The governor of the CBN, Mr. Olayemi Cardoso, stated last week that more than $26 billion passed through Binance to Nigeria in just a year from verified and unverified sources that need to be recognised by the CBN. However, the Apex Bank should have disclosed how much was left in Nigeria through Binance, which made some people wonder about the system's credibility.

"Suffice to say that we are determined to do everything it takes to ensure that we take charge of our market and not allow others to manipulate it… We will not accept it and will do everything possible to prevent any infraction," he said.

The firm has since said, "It is important to note that foreign exchange rates are influenced by various complex factors, which Binance does not influence."

Last month, regulatory bodies asked that Binance halt all USDT trades in naira and restrict access to its websites following news that it was a speculator hub. 

Currently, the Binance P2P market is officially unavailable in Nigeria. Last week, two of the firm's executives were detained as authorities allegedly demanded to see the list of the firm's Nigerian users.

As we speak, Binance P2P is currently unavailable to Nigerians following a regulatory move to stabilise the naira against the dollar. Last week, after the government released a notice that it was going to probe Binance for being one of the major players in devaluing the naira against the dollar, the firm sent in two officials to talk with the government, but immediately they arrived in Nigeria, they were detained for someday before they had a meeting the government.