Is Binance still working in Nigeria? With the rapidly changing crypto landscape and increasing regulatory scrutiny, many Nigerian traders are uncertain about their options. Binance, once the go-to platform, has faced significant challenges that have altered its services in the country.
But don’t worry, there are plenty of ways to continue trading cryptocurrencies in Nigeria. In this article, we’ll explore the latest updates on Binance's operations in Nigeria, the regulatory hurdles it’s facing, and the best alternatives.
Is Binance still working in Nigeria: Overview
Binance, founded in 2017 by Changpeng Zhao, is the world's largest cryptocurrency exchange based on daily trading volume.
It lets you trade cryptocurrencies like Bitcoin, Ethereum, and Binance Coin (BNB). Binance has become popular because of its easy-to-use platform, low trading fees, and a large selection of cryptocurrencies.
Nigeria is an important market for Binance and the entire cryptocurrency world. With a growing number of tech-savvy individuals and an increasing interest in digital assets, Nigeria is a leader in crypto adoption in Africa.
The country’s economic challenges, like inflation and currency devaluation, have pushed many Nigerians to look for alternative investment opportunities, including cryptocurrencies.
However, recent changes in regulations have affected Binance's operations in Nigeria.
In March 2024, Binance announced that it would stop offering services in Nigerian Naira (NGN), including deposits and withdrawals.
While this raised concerns, Binance clarified that you can access other services using different cryptocurrencies. So, Binance still operates in Nigeria but with some adjustments due to regulatory issues. Let’s explore more about this.
Is Binance still working in Nigeria? Current Status
Binance recently announced major changes to its operations in Nigeria, particularly concerning its support for the Nigerian Naira (NGN).
As of March 5, 2024, Binance stopped accepting NGN deposits, and by March 8, 2024, users could no longer withdraw Naira from their accounts. This change follows increased scrutiny from the Nigerian government investigating Binance for possible currency manipulation and tax evasion.
Binance urged users to withdraw their NGN or convert it into cryptocurrencies before these services were discontinued. Any remaining NGN balances after the deadline would automatically convert to Tether (USDT) at 1 USDT = 1,515.13 NGN rate.
Binance also delisted all NGN trading pairs, including BTC/NGN and USDT/NGN, as of March 7, 2024.
However, Binance assured its Nigerian users they could access other services using different cryptocurrencies. How does this shift affect Nigerian crypto traders and what regulations are there in Nigeria regarding crypto trading? Keep reading to find out.
Is Binance still working in Nigeria? Regulatory Challenges
Nigeria crypto regulations are changing with the introduction of the new framework by the Securities and Exchange Commission (SEC) aimed at Virtual Asset Service Providers (VASPs).
This framework ensures that cryptocurrency platforms in Nigeria follow local laws, including tax obligations and consumer protection measures. The SEC now requires VASPs to register and have a physical office in Nigeria for proper regulatory oversight.
Recently, two local exchanges, Quidax and Busha, received approval in principle from the SEC, signaling progress toward a more formalized crypto market in Nigeria.
In response to these regulations, Binance has set two key conditions before it can consider registering with the SEC.
- First, Binance wants the release of Tigran Gambaryan, an executive detained over foreign exchange manipulation and other legal issues.
- Second, Binance seeks a resolution of its ongoing legal disputes with the Nigerian government over allegations of tax evasion and money laundering.
Until these matters are resolved, Binance is hesitant to register under the SEC’s framework, even though it continues to serve Nigerian users through alternative methods like VPNs.
Is Binance still working in Nigeria? Legal Issues and Detentions
In February 2024, Binance encountered serious legal challenges in Nigeria when two of its executives, Tigran Gambaryan and Nadeem Anjarwalla, were detained on charges of money laundering and tax evasion.
The Nigerian government accused Binance of facilitating fund transfers that contributed to the devaluation of the Naira and claimed the exchange played a role in illegal operations that worsened the country's economic crisis.
Among the allegations was the laundering of approximately $35 million, which Binance has denied. The exchange stated that Gambaryan, a compliance officer, was not directly involved in illicit activities.
Gambaryan was held for eight months, during which he suffered severe health problems like malaria and pneumonia. He was released on October 23, 2024, after the Economic and Financial Crimes Commission (EFCC) dropped the money laundering charges, citing his deteriorating health.
However, his release did not include an official acquittal, leaving some legal uncertainty for both Gambaryan and Binance. The EFCC continues to pursue tax evasion charges, indicating that while one legal issue was resolved, significant challenges remain for Binance.
Now, you might have a clear answer to the question, "Is Binance still working in Nigeria?”
Binance withdrawal options
The crypto exchange status for Binance users in Nigeria changed due to recent events. Since Binance no longer supports Nigerian Naira (NGN) withdrawals, you must explore alternative ways to access your funds. Here are two alternative Binance withdrawal options:
Transfer to Other Crypto Apps
You can transfer USDT from your Binance account to other cryptocurrency platforms that allow NGN withdrawals. Some great options include Bybit, Bitnob, Palremit, Noones, Cash In, and Yellow Card.
Once your USDT is on one of these platforms, you can easily convert it into Naira and withdraw it to your bank account.
Peer-to-Peer (P2P) Trading
Another option is informal P2P trading with trusted contacts. You can sell your USDT directly to friends or acquaintances in exchange for Naira. For this, you must agree on an exchange rate and use secure transaction methods.
Networks like TRC20 or BEP20 are ideal for this because of their lower fees. Just make sure the transaction is safe and with someone reliable. Check out the Binance P2P guide before trading.
Binance Alternatives Nigeria
As Binance faces regulatory challenges in Nigeria, many traders are seeking reliable alternatives to continue their cryptocurrency activities. Here are five top Binance alternatives:
1. Quidax: Quidax is a leading cryptocurrency exchange in Nigeria that lets you buy, sell, and store various cryptocurrencies using Nigerian Naira (NGN). It's SEC-approved and offers a user-friendly interface with payment methods like bank transfers and debit cards.
2. Busha: Another SEC-approved platform, Busha simplifies cryptocurrency trading for Nigerians. You can buy Bitcoin, Ethereum, and USDT directly with NGN. Busha is designed for both beginners and experienced traders and is known for its commitment to regulatory compliance.
3. NairaEx: NairaEx is one of Nigeria's largest Bitcoin exchanges. It offers an easy-to-use platform for trading Bitcoin and other cryptocurrencies using NGN. The exchange allows instant currency conversions between Naira and digital assets, making it great for quick transactions.
4. Remitano: Remitano is a popular peer-to-peer (P2P) exchange where buyers and sellers connect directly. It uses an escrow service for secure transactions and supports multiple cryptocurrencies. The P2P model gives users more privacy and control over their funds.
5. Luno: Luno is a well-established exchange in several countries, including Nigeria. You can trade Bitcoin and Ethereum with its mobile app. With features like instant buying and low withdrawal fees, Luno is perfect for beginners and experienced traders.
Research each trading platform and choose the one that best suits your needs.
Conclusion
Binance’s future in Nigeria remains uncertain due to ongoing regulatory challenges, but the platform’s commitment to working with local authorities offers a glimmer of hope for a return. Despite these hurdles, you have alternatives to continue cryptocurrency activities.
Platforms like Quidax, Busha, NairaEx, Remitano, and Luno provide secure, compliant options to local needs. Stay informed, adapt to changes, and choose the best platform for your needs for successful trading.
FAQs
1. Is Binance still working in Nigeria?
Binance has suspended its Nigerian Naira (NGN) services, including deposits and withdrawals, but remains operational for users trading in other cryptocurrencies.
2. What are the alternatives to Binance for Nigerian users?
Alternatives include Quidax, Busha, NairaEx, Remitano, and Luno, all of which support NGN transactions and offer various features for cryptocurrency trading.
3. Can I still use Binance with a VPN in Nigeria?
While some users employ VPNs to access Binance, this practice can pose security risks and may violate local regulations, so it's advisable to consider compliant alternatives.