Binance traders in Nigeria have criticized the exchange for restricting the sale of USDT on the platform.
In a recent press release to Nigerian clients, major cryptocurrency exchange Binance distanced itself from rumored currency speculation that has put downward pressure on the already weak naira.
It was previously reported that the cryptocurrency exchange had placed a cap on USDT sales on its peer-to-peer (P2P) market.
Binance Reportedly Under Censorship in Nigeria
On Tuesday, February 20, traders on Binance in Nigeria complained that they were unable to buy or sell USDT on the cryptocurrency trading platform, with reports that the company had set an exchange rate of 1,802 NGN (Nigerian Naira) for 1 USD for traders who wanted to sell USDT. upper limit.
The price limit caused traders to look for other platforms selling prices higher than Binance’s offer.
The exchange’s restrictions are rumored to be the result of directives from the Central Bank of Nigeria (CBN) and other government agencies, which ordered the platform to limit the sale of USDT.
Binance said in a statement on the matter on February 21 that some adjustments had to be made to enable continued trading.
“To protect users and prevent any abuse, our systems automatically pause in the event of significant currency movements. Late last night, we observed prices being temporarily suppressed, resulting in system limits being briefly reached. We quickly made the necessary Adjustments are made to allow trading to proceed."
However, Binance added that it is not responsible for fixing foreign exchange rates.
“It’s important to note that foreign exchange rates are affected by a variety of complex factors over which Binance has no influence.”
Binance P2P is under scrutiny amid the worsening naira crisis. The Nigerian currency has been falling against major currencies such as the US dollar and British pound, with the former trading at over 1,700 NGN and the latter at over 2,000 NGN on the parallel market.
Meanwhile, Binance also said it is "working hand in hand with local authorities, legislators, and regulators to ensure we take action against violations."
Nigeria’s government remains wary of cryptocurrencies
With the naira steadily depreciating, it was thought that political policy might look for scapegoats to blame for currency depreciation, and cryptocurrencies appear to have come in handy.
Nigeria’s top bank, CBN, previously banned banks from servicing cryptocurrency-related accounts, but reversed its stance after lifting the ban in December 2023.
According to the central bank, financial institutions can open accounts with virtual asset service providers (VASPs), but are still prohibited from holding or trading cryptocurrencies. #币安 #尼日利亚