Binance Halts Nigerian Naira Services Amid Regulatory Scrutiny

Binance, one of the world's largest cryptocurrency exchanges, has announced plans to discontinue its Nigerian Naira (NGN) services in response to heightened regulatory scrutiny in Nigeria. The decision comes as two Binance executives were recently detained in the country, and the exchange's CEO, Richard Teng, has been summoned to appear before a committee investigating financial crimes.

Amid allegations of operating illegally and manipulating the country's exchange rate, Binance has faced mounting pressure from Nigerian regulators. The House of Representatives Committee on Financial Crimes has initiated investigations into potential money laundering and terrorist financing activities associated with the exchange.
As a result, Binance has taken proactive measures to address the regulatory concerns by announcing the discontinuation of its NGN services. The exchange will delist any existing NGN trading pairs by Thursday, with any remaining NGN balances in user accounts set to be converted to USDT (Tether) on Friday.

In addition to discontinuing support for NGN in spot trading, Binance Convert, Binance P2P, the exchange's Auto Invest feature, and Binance Pay will also cease support for the Nigerian currency at various dates and times.

The regulatory scrutiny facing Binance in Nigeria intensified following the detention of two executives in February. Although the executives were not formally charged, reports suggest they could face allegations related to currency manipulation, tax evasion, and illegal operations.

Binance's move to discontinue NGN services underscores the challenges faced by cryptocurrency exchanges operating in regulatory environments characterized by uncertainty and scrutiny. As the cryptocurrency industry continues to attract increased attention from regulators worldwide, exchanges like Binance are compelled to adapt their operations to comply with regulatory requirements while navigating complex legal and compliance frameworks.