Binance, a leading cryptocurrency exchange platform, has taken action to address what it describes as unusual currency movements among Nigerian traders. The platform’s response follows complaints from users regarding restrictions on trading USDT (Tether) since Tuesday. According to Binance, these measures aim to safeguard users and prevent misuse of its services, asserting that its platform operates on market principles and does not dictate currency pricing in Nigeria.
This development comes amid reports—albeit unconfirmed—that the Central Bank of Nigeria (CBN) and other governmental bodies instructed Binance to impose limitations on Nigerian traders selling USDT. The Nigerian naira has been experiencing a consistent decline against various currencies, notably with the British pound surpassing the N2,000 mark. Official exchange rates on Tuesday stood at N1551.24 per US dollar, while the peer-to-peer (P2P) market exceeded N1800 per US dollar, as reported by Nairametrics.
In a statement released on Wednesday, Binance reassured Nigerian users of the safety of their funds, affirming that its P2P product remains operational with adjustments made. The platform automatically halts trading during significant currency fluctuations to protect users, promptly making necessary adjustments to resume trading. It emphasized stringent measures, including real-time monitoring and removal of non-compliant advertisements, to ensure market integrity.
Regarding collaboration with regulators, Binance highlighted its commitment to transparency in cryptocurrency trading and its impacts on financial markets. It clarified that it does not influence foreign exchange rates, which are influenced by various complex factors beyond its control. The platform affirmed its engagement with regulators, policymakers, and stakeholders to facilitate open dialogue about cryptocurrency and financial market management.
Binance urged users and the community to disregard unfounded fears or uncertainties, appreciating ongoing support amid dynamic market conditions. It pledged to provide updates through official channels as needed, underscoring its dedication to navigating evolving market landscapes transparently.
Credit: Nairametrics
