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Cryptocurrency exchange platform, Binance, has announced that it will stop providing all services related to the Nigerian naira (NGN).
Binance, in a statement published on its website on Tuesday, said, “Starting at 8:00 UTC on March 8, all remaining NGN balances in Binance users’ accounts will be automatically converted to USDT stablecoin.”
Until this time, it advised users to withdraw NGN as deposits will be suspended on March 5. In addition, Binance will completely stop supporting NGN in spot trading, P2P, Auto Invest, and Binance Pay.
“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,” said Binance.
On Monday, the House of Representatives threatened to issue a warrant of arrest on the company’s Chief Executive Officer, Changpeng Zhao, over the failure of the company’s executives to appear in person before the House investigation panel following a petition that borders on the financing of terrorism, money laundering, tax evasion, and other financial crimes.
The Nigerian Government is demanding at least $10 billion from Binance in retribution for the damage caused on the Nigerian foreign exchange market.
Special Adviser to the President on Information and Strategy, Bayo Onanuga, told BBC on Friday that people used Binance to arbitrarily fix dollar-naira rates, a practice he said negatively impacted the value of the local currency. He also claimed that Binance is not a registered company in Nigeria.
Also on Tuesday, February 27, Olayemi Cardoso, Governor of the Central Bank of Nigeria (CBN), said $26 billion passed through Binance Nigeria from unidentified sources in one year.
The Nigerian Communications Commission (NCC) had on February 21, blocked online platforms, including Binance and other crypto firms to avert the continuous manipulation of the forex market and illicit movement of funds.