Binance, the world's leading cryptocurrency exchange, has reacted to the Nigerian government's stringent measures against the crypto industry, which have included detaining two Binance employees. As a result, Binance has suspended its services in Nigerian naira (NGN). The affected Nigerian citizens are voicing their discontent with the government's actions on social media platforms.
In an announcement on its website, Binance stated that from March 5 onwards, users would not be able to make NGN deposits. All NGN spot trading pairs will be removed from the platform on March 7. On March 8, users will no longer have the option to withdraw NGN, and any remaining NGN balances will be converted to USDT. Binance stated in the post that it aims to "continue to build the crypto ecosystem in a way that promotes transparency and long-term, sustainable growth."
An engineer and crypto enthusiast took to X, formerly known as Twitter, to criticize Nigerian President Bola Ahmed Tinubu over Binance’s NGN delisting. The post read: "Tinubu has chased Binance, the largest crypto marketplace in the world, out of Nigeria," adding that "Tinubu’s mission to destroy Nigeria continues to unfold daily."
Decrypt reported that the Nigerian government has recently pointed fingers at crypto companies for causing devaluation of the naira. Inflation for the naira reached nearly 30% in January, prompting many people to turn towards cryptocurrencies as a hedge against inflation. The Nigerian government claimed that Binance is manipulating the naira’s value and subsequently detained two Binance officials - one American citizen and one British citizen - in Abuja after these executives traveled to Nigeria for discussions with government officials.
However, Kingsley Moghalu, a professor and former deputy governor of Central Bank of Nigeria (CBN), attributed Nigeria’s economic turmoil - hyperinflation, decreased purchasing power and devaluation of the naira - to years of mismanagement and government corruption, as reported by Leadership. Moghalu suggested that instead of "scapegoating" crypto companies for the devaluation of the naira, the CBN should have sought to hold commercial bank executives accountable for manipulating foreign exchange rates.
According to CoinMarketCap, Binance was launched in 2017. As of August 2022, Binance had a daily trading volume of approximately $76B, solidifying its position as the largest crypto exchange in the world. Binance lists more than 350 tokens and enables users to buy, sell, and store digital assets.