Binance is one of the world’s largest cryptocurrency exchanges, known for its wide range of trading pairs, user-friendly interface, and innovative features. Binance has expanded its operations globally; establishing localized exchanges in various regions such Nigeria, Ghana, Uganda, Kenya, and more to cater to local markets. However, there have been controversies ever since Binance Cryptocurrency exchange stepped into Nigeria. So, was Binance finally banned in Nigeria or is it still in operation? We will answer all your questions.
- How to trade Crypto currencies legally in Nigeria
- What is the best Crypto exchange platform in Nigeria?
- How to verify Bitcoin on Cash app online
It should be noted that in February 2021, the Central Bank of Nigeria (CBN) declared a directive to stop all banks from facilitating crypto-related transactions. It was due to the concerns about the risks associated with cryptocurrencies, including money laundering, terrorism financing, and other illicit activities.
However, the same directive was met with criticism and legal challenges. Subsequently, the CBN clarified that the directive did not prohibit individuals from owning or trading cryptocurrencies. This only meant means Nigerians were then free to use Binance to trade cryptocurrencies online.
Is Binance Cryptocurrency exchange banned in Nigeria?
Nigeria’s regulatory stance on cryptocurrency-related activities has been subject to developments and clarifications over the years. And 5th March the crypto exchange company, Binance announced that would stop all naira services, which only meant that all users had to withdraw the Nigerian naira (NGN), trade their NGN assets or convert NGN into crypto.
This move was known popularly as a ban on cryptocurrency exchange in Nigeria, which also led Binance to halting all its services in Nigeria. Additionally, they have also blocked peer-to-peer transactions and trading on the naira against bitcoin and the tether digital coins on its exchange. As we speak, Binance is working as much as it can with the Nigerian government to see that its detained executives are released.
Why Binance was banned and stopped working in Nigeria?
There are several reasons why the Nigerian naira (NGN) issued a directive concerning the banning of Binance cryptocurrencies exchange in Nigeria and the most obvious one is instability of the Nigerian local currency. Binance was accused of manipulating the foreign exchange rate after integrating Nigeria’s local currency onto its platform, which also led to two of its executives being arrested.
The CBN expressed concerns about the potential impact of cryptocurrencies on the stability of the Nigerian financial system. Cryptocurrencies are known for their price volatility, which could pose risks to investors and financial institutions.
On the other hand, the CBN highlighted the use of cryptocurrencies for illicit activities such as money laundering, terrorism financing, fraud, and scams. The anonymity and decentralization of cryptocurrencies can make them attractive for criminals seeking to evade regulatory scrutiny.
And lastly, the CBN emphasized the need to protect consumers from the risks associated with cryptocurrencies, including the lack of investor protection measures and the potential for loss of funds due to price volatility and security breaches.
What are Binance alternatives in Nigeria?
As a result of the restrictions imposed on Binance, Cryptocurrency exchange platform in Nigeria, Nigerian crypto investors were left in panic, not sure of the next step to take. Many Investors have also reported that their Binance deposits are no longer working due to these restrictions. However, there are many other alternatives you can use to exchange and trade Cryptocurrencies in Nigeria as we have listed them below:
- Bitget: Many Nigerians have transitioned to Bitget ever since Binace shutdown its local currency exchange services in Nigeria. Bitget has a seamless peer-to-peer (P2P) trading and offers low fees, high liquidity, and top-notch security measures, making it a reliable option for trading cryptocurrencies in Nigeria.
- Luno: This cryptocurrency exchange that operates in Nigeria and several other countries. It supports the buying, selling, and trading of popular cryptocurrencies such as Bitcoin (BTC), Ethereum (ETH), and Litecoin (LTC).
- Quidax: This allows users to buy and sell a wide range of cryptocurrencies, including Bitcoin, Ethereum, Ripple, and many others.
- Bitkoin Africa: This facilitates peer-to-peer trading of Bitcoin and other cryptocurrencies. It provides a platform for users to buy and sell cryptocurrencies directly with each other using Nigerian Naira (NGN) as the trading pair.
- Busha: It is a cryptocurrency exchange and wallet app that allows users to buy, sell, and store a variety of cryptocurrencies, including Bitcoin, Ethereum, and Ripple in Nigeria.
- Yellow Card: This is a cryptocurrency exchange and payment platform that enables users to buy and sell Bitcoin and other cryptocurrencies with ease.
- Bundle: Bundle is a Nigerian cryptocurrency wallet and social payments app that allows users to buy, sell, and store cryptocurrencies such as Bitcoin, Ethereum, and Binance Coin (BNB).
Frequently Asked Questions
If you want to withdraw your money from Binance before it shuts downs in Nigeria, you will need to first to exchange your USDT to NGN by going to the trade section. After that, you can now go ahead to withdrw your money by navigating to your portfolio and select NGN. Scroll down to find the “WITHDRAW” option, click on it, and enter your bank details for withdrawal.
The minimum deposit per transaction for Binance in Nigeria ranges from 150 NGN while their maximum deposit amount per transaction is 430,000 NGN.
Yes, the Nigeria government together with the Central Bank of Nigeria (CBN) has imposed a ban and several restrictions on the Cryptocurrency exchange and trading company, Binance. Two of its exclusives have been detained with charges such as money laundering and other cases.
No, Binancie is no longer working in Nigeria! As of 5th March, the crypto exchange and trading company, Binance announced that it would stop all naira services having been restricted by the Nigerian government together with the Central Bank of Nigeria (CBN) on cases of money laundering and other cases.
Binance has been accused of manipulating the foreign exchange rate and therefore has been forced to leave Nigeria due to the ban and restrictions imposed on the company. Additionally, two of its executives have been arrested on the same cases.
Now that Binance has exited Nigeria, calling off all its Cryptocurrence exchange and trading services, there are other crypto platforms you may want to consider as listed below:
1. Bybit: Overall Crypto Best Trading Platform in Nigeria
2. Kraken: Safest Crypto Exchange in Nigeria
3. Bitget: Best Crypto Trading Website for Derivatives
4. Kucoin: Best Low-Fees Crypto Trading Platforms in Nigeria
5. Remitano: Best Crypto Exchange to Buy Bitcoin in Nigeria
No, Crypto Currencies are not illegal in Nigeria. However, the Nigerian government together with the Central Bank of Nigeria (CBN) encourages all crypto firms to register and abide with all regulatory bodies in Nigeria in order to operate smoothly.
