Binance, the top cryptocurrency exchange, announced the discontinuation of all Nigerian naira services on Tuesday. This decision comes amidst an ongoing dispute with the Nigerian government.
The company said in a statement on its website that effective Friday, all remaining naira balances in user accounts will be automatically converted to Tether (USDT), a stablecoin pegged to the US dollar.
Also, deposits in naira will no longer be accepted after 2:00 PM UTC( Coordinated Universal Time, which is one hour behind Nigerian time) on Tuesday, while withdrawals of naira will be disabled after 6:00 AM UTC on Friday.
The trouble with Nigeria
Nigeria is a major cryptocurrency market, but the government has accused Binance of currency manipulation and rate fixing, demanding nearly $10 billion in compensation. The company denies the allegation.
The naira has plunged from around 464 it exchanged to a dollar last June when President Bola Tinubu came to office, to over 1600.
Last month, the government ordered the internet providers in Nigeria to bar access to Binance website, but Nigerian users continued to use the platform, using virtual private network (VPN).
The government arrested two Binance executives who flew into the country for talks last week. Presidential spokesman Bayo Onanuga later told the BBC the government was imposing a $10 billion fine on Binance, but later claimed he was misquoted.
On Monday, the Nigerian House of Representatives Committee on Financial Crimes said it would recommend the arrest of Binance CEO Changpeng Zhao over alleged tax evasion and money laundering activities in Nigeria.
This action follows a motion by Isah Dogonyaro (APC-Jigawa) during a public hearing held on Monday in Abuja.
The committee said that despite being invited twice, Mr Zhao, who is not based in Nigeria, refused to appear before them and answer questions regarding the allegations.
Mr Dogonyaro criticised these absences as an “insult to the committee and the Nigerian people.”
Binance’s legal counsel, Senator Ihenyen, argued that the company had already responded in writing to all accusations. He expressed further willingness to provide additional written answers if required.
Mr Ihenyen said the company was concerned about the safety of its officials in Nigeria after last week’s arrest of two senior company representatives by the National Security Adviser’s office.
The committee chairman, Ginger Obinna (LP-Abia), said the House had taken a position of not accepting legal representation from Binance. He said the leadership of Binance should be arrested and brought to the committee to answer questions against the company.
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