Binance sets to cease operations in Nigeria after heavy government crackdown on crypto exchanges

The world’s largest cryptocurrency exchange, Binance, says it will stop all financial transactions and trading in Nigeria in response to a nationwide crackdown on crypto exchanges. The Nigerian government recently blamed the firm for contributing to growing volatility in the Nigerian forex market and detained its top officials…

Cryptocurrency exchange giant Binance has announced that it will stop all transactions and trading in Nigeria’s local currency after March 8 in response to a country-wide crackdown on crypto exchanges.

The Nigerian authorities, including the Central Bank, have blamed the crypto exchange firm for manipulating the forex market and feeding a black market for foreign exchange.

Binance added that it will stop supporting withdrawals after Friday, and any remaining balances in Nigerian Naira will be automatically converted into a stablecoin whose value is pegged to the U.S. dollar.

Nigeria is facing tough economic realities due to the eventual removal of fuel subsidies and the poor performance of the Naira against the US dollar, among other challenges, leading to a sudden jump in the country’s inflation rate to nearly 30 percent.

In recent times, the government has cracked down heavily on the activities of the cryptocurrency trading website and also detained its top officials as part of efforts to curb volatility in the forex market.

The presidential spokesman, Bayo Onanuga, explained that the activities of the firm will destroy the Nigerian economy if left alone to operate without government intervention.