World’s largest cryptocurrency exchange, Binance suspends service in Nigeria following CBN’s directive

Another day, another crackdown from government authorities in the crypto world.

Following the Central Bank of Nigeria’s directive to identify and close all accounts tied to cryptocurrency platforms or operations, popular exchange for buying cryptocurrencies, Binance, has suspended its service in Nigeria.

The company released a statement on its website that reads:

Fellow Binancians,

We are aware of the recent circular shared by the Central Bank of Nigeria (CBN) around cryptocurrency-related Nigerian naira (NGN) payment activities in Nigeria, and we are monitoring the situation closely.

Please note all your funds on Binance.com remain safe and crypto services on Binance.com will continue as normal.

However, our NGN payment partners are suspending deposit services until further notice. From 7PM (GMT+1) on Feb 5th 2021, Binance will temporarily suspend NGN deposits through our fiat partner channels. Withdrawal services remain normal and will continue to be processed but might take slightly longer time than usual. We apologise for any inconvenience this may cause.

We will continue to provide further updates as soon as they become available, and we are working closely with all relevant stakeholders. Binance remains committed to supporting the growth of the blockchain ecosystem in Africa.

Thank you for your patience and support.

Binance is notable for being the largest cryptocurrency exchange globally in terms of trading volume with a $1.3 billion market capitalisation as of 2018. Since its foray into Africa’s fintech ecosystem, the Cryptocurrency exchange platform has trained over 70,000 Africans about crypto fundamentals, practical tutorials on how to set up an account – and buy & sell crypto, technical analysis and crypto trading.

In the first quarter of 2021, the company intends to kickstart a Masterclass programme that aims to equip up to 1000 African blockchain developers with the right tools and skills to build their first DApps on the Binance Smart Chain (BSC) network.

Bamboo, another micro-investments platform that allows anyone to seamlessly purchase cryptographic assets like Bitcoin, has also suspended its service to Nigerian crypto traders.

In an email sent to all its Nigerian users, the company said the USD Domiciliary Transfer option is no longer available for use due to regulations.

”Effective immediately, no transfers made to our domiciliary account will be received. Please also remember that we currently do not receive payments through our Silvergate or BBVA accounts.”

“We encourage you to use the USD Debit/Credit Card option or any other deposit option on the Bamboo app,” it added.

Now that cryptocurrency trading in Nigeria has been shut down, more of the country’s exchanges and traders are moving operations overseas. Finance experts have also predicted that Nigeria’s Bitcoin trading volume will plummet amid the Central Banks’ blockade of exchanges and that the price of Bitcoin would fall as Nigeria currently ranks as the country with the highest cryptocurrency trading volume in Africa and the second highest globally.

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