Binance to Cease Naira Services in Nigeria Amid Legal Dispute with Government

Major cryptocurrency exchange, Binance, has announced its decision to discontinue all Naira services for users in Nigeria amidst a legal dispute with the government. This move comes following accusations of manipulating foreign exchange rates and an ongoing investigation by Nigerian authorities.

In a recent statement released on its platform, Binance revealed that as of March 8th, they will no longer support Naira transactions, including deposits and withdrawals. Users are advised to withdraw their Naira assets before the deadline or risk automatic conversion to the US dollar-pegged cryptocurrency, Usdt.

Nigeria, being one of the prominent cryptocurrency markets globally, has been at the center of the conflict, with the government demanding substantial compensation from Binance. The exchange faces allegations of engaging in currency speculation and rate fixing, which have contributed to the devaluation of the Nigerian Naira.

The Nigerian currency has experienced a significant decline, losing nearly 70% of its value in recent months, alongside rising inflation rates. The situation has raised concerns over the economic stability of the country and intensified regulatory scrutiny on cryptocurrency platforms operating within its borders.

Furthermore, in a bid to comply with regulatory directives and address the escalating tensions, Binance has set strict timelines for the cessation of Naira services. Effective immediately, no new Naira deposits will be accepted, with withdrawals scheduled to cease by the end of the week.

It’s worth noting that the company has assured users of a seamless transition, stating that any remaining Naira balances will be converted to Usdt at the prevailing market rate. This move aims to prevent any disruptions to user funds and uphold operational efficiency within the exchange.

As the legal battle between Binance and Nigerian authorities unfolds, the global cryptocurrency community closely monitors the developments, recognizing the implications for both the industry and the regulatory landscape in Africa. The unfolding events are likely to shape future interactions between crypto exchanges and governments worldwide.