Nigerian crypto investors worry over Binance exit

The suspension of naira to dollar exchange services by Binance has driven fear and panick among Nigerian cryptocurrency investors, whose funds may be trapped.

Recall that on Tuesday, March 5, 2024, the crypto exchange revealed that it put an end to supporting withdrawals after Friday and that any remaining balances in the Nigerian currency would be automatically converted into Tether, a stablecoin whose value is pegged to the United States dollar.

Binance disclosed in a statement: “All spot trading pairs against the naira will be delisted on March 7 at 3:00 a.m. Open spot orders for these pairs will be automatically closed.

"Binance Convert, Binance P2P, the exchange’s Auto Invest feature, and Binance Pay will also cease support for the naira at various dates and times."

This was a result of a disagreement between Binance and Nigerian fiscal and monetary authorities, who had accused the platform of manipulating the country’s foreign exchange rate.

The cryptocurrency platform's exit has put many Nigerian crypto investors in fear - Especially those who have billions of investments

A crypto trader, Ozioma Okechukwu, said: “I am aware of other crypto exchange platforms operating in Nigeria but many of us have been used to Binance. No matter how you look at it, it is a big blow to the market.

“Everybody knows how big Binance is because it is a global platform. Other players may have similar thoughts as Binance to call it a quit. You could see what they have been through with the Nigerian government.”

BEB