Binance, the world's largest cryptocurrency exchange, has announced its decision to discontinue services involving the Nigerian naira (NGN). This move comes in the wake of a crackdown by the Nigerian government on crypto companies, which included the detention of two Binance executives who were visiting to meet with government officials.
In an announcement on its website, Binance revealed that it would be discontinuing its NGN services. The process will commence with the removal of NGN deposits on March 5. Subsequently, all NGN spot trading pairs will be delisted on March 7. From March 8 onwards, users will not have the option to make withdrawals in NGN. Any remaining NGN balances will be converted into USDT.
According to Decrypt, amid the Nigerian government's intensified scrutiny of crypto companies, two Binance executives flew into Nigeria to discuss the situation with government officials. These executives - one American and one British citizen - are currently being detained in Abuja, Nigeria's capital city. The crackdown on crypto is a response to the volatility of the NGN, which saw inflation rates peak at 29.9% in January. Many Nigerians have resorted to using crypto as a safeguard against inflation and economic instability.
A crypto enthusiast voiced concerns over the government's detention of Binance officials via X (formerly Twitter), questioning what this could mean for future foreign investment in Nigeria. "Binance sent two executives to Nigeria to discuss with the government, but the NSA turned around to detain them & seized their passports," they wrote. "And Nigeria is looking for foreign investors? What type of madness is this?"
In an interview with Bloomberg, Zakari Mijinyawa, a spokesperson for the National Security Advisor (NSA), clarified that the two executives had not been arrested per se. "Meetings and discussions are ongoing," Mijinyawa said. "It’s a national security issue and an interagency process is on." Bloomberg reported that the executives had been invited to meet with government officials in Nigeria as the country grapples with a cost of living crisis.
Launched in 2017, Binance has grown rapidly and, according to CoinMarketCap, it boasted a daily trading volume of approximately $76 billion as of August 2022. This makes it the largest crypto exchange globally. Binance lists over 350 tokens and allows users to buy, sell, and store digital assets.