The World’s Leading Cryptocurrency Exchange Platform, Binance has announced its plans to discontinue All Nigerian Naira (NGN) Services, signaling an exit from the Nigerian Market.
Binance has informed users that any remaining NGN balances will be automatically converted to Tether (USDT) stablecoin after March 8, 2024.
Therefore, users were advised to withdraw, trade their NGN assets, or convert them into cryptocurrency before the deadline.
In addition, it said, trading pairs involving NGN and the ability to deposit using NGN will cease temporarily.
Moreover, it said, NGN will no longer be a supported payment method across Binance’s range of services.
The Nigerian government had accused Binance and other Cryptocurrency platforms of deception and currency manipulation, consequently, has been planning to clamp down on the platforms.
They use a manipulative tactic known as spoofing. Here, individuals or groups place large buy or sell orders on the platform without intending to execute them.
This creates a false illusion of high demand or abundance, influencing others to buy or sell at manipulated prices.
This deceptive practice, often used in conjunction with pump-and-dump schemes, preys on unsuspecting investors, leaving them with significant financial losses and as in the case of the Naira, has resulted in creating Fear of Missing Out (FOMO) and price depreciation and devaluation.
Just recently, the Special Adviser to the President on Information and Strategy, Bayo Onanuga called for the outright ban of the platforms.
He said, Binance, facing regulatory showdown in many countries, and causing disruptions in the currency market, should not be allowed to dictate the value of the Naira, not on its crypto exchange platform.
He advocated that other crypto platforms such as Kucoin, and Bybit should also be banned from operating in the nation’s cyberspace, adding that FX platform, Aboki should be re-banned.
Onanuga therefore, urged the EFCC and the CBN to move against these platforms trying to manipulate the country’s national currency to Ground Zero.
“Crypto should be banned in our country or else this bleeding of our currency will continue unabated”, he advised.
Nigeria is not the first country to make this kind of decision to ban crypto platforms from operating in its cyberspace.
According to Data Wallet, Binance is prohibited in the United Kingdom by the Financial Conduct Authority from conducting any regulated activities.
In Japan, the Financial Services Agency (FSA) banned Binance from operating without the necessary regulatory approval.
Ontario, Canada, has also suspended Binance services following its inability to meet the province’s securities regulation criteria.
The Monetary Authority of Singapore also banned Singaporean investors from accessing Binance’s services.
