Binance Confirms Working With FG To Block Dollar-Naira Exchange

Binance, the cryptocurrency powerhouse, has announced that it is collaborating with the Nigerian authorities to eliminate non-compliant operations on its platform.

On Tuesday, Binance announced its “commitment to P2P users in Nigeria” and warned that “users behaving in a manipulative way will be removed from the platform.”

“As industry leaders,” Binance said, “We are working hand in hand with local authorities, lawmakers, and regulators to ensure we act on non-compliance.’’

The crypto exchange platform further said it is “setting an upper limit for ads, filtering and removing bad ads, requiring and raising deposits for merchants posting ads as well as processes for actioning against any market manipulators.”

On Tuesday, Binance banned the sale option for its Nigerian users, preventing them from selling fiat currency (USDT) on the platform. It also limited the buy option to $1802 for Nigerian consumers.

It also prohibited the acquisition of cryptocurrencies via P2P for Nigerian users, leaving individuals who wanted to sell crypto assets like as Bitcoin, BNB, and Ethereum trapped.

Read Also: Founder Of Binance Crypto Exchange Admits Failing To Prevent Money Laundering

This is another desperate step by the Tinubu-led government to arrest the naira’s depreciation versus the dollar.

Sources close to the Nigerian administration have lately spoken about how cryptocurrency has allowed people to avoid the country’s plan to improve dollar liquidity.

“There is something they call Binance, these guys don’t do anything but speculate,” Ayo Oyalowo, a member of APC’s presidential campaign council told Channels TV on Tuesday evening, Feb. 20.

“Just today alone, they have shifted the value of naira against the dollar from N1,700 to N1,800 within one hour.”

Earlier on Tuesday, Nuhu Ribadu, the National Security Adviser, instructed law enforcement authorities to take strict action against anyone involved in foreign exchange market speculation.

“In a concerted effort to safeguard Nigeria’s foreign exchange market and combat speculative activities, the Office of the National Security Adviser and the Central Bank of Nigeria are joining forces to address challenges impacting the nation’s economic stability,” a statement issued by Mr Ribadu’s office read.

It added, “The CBN’s proactive measures to stabilise the foreign exchange market and stimulate economic activities have been commendable. However, the effectiveness of these initiatives is being undermined by the activities of speculators, both domestic and international, operating through various channels, thereby exacerbating the depreciation of the Nigerian naira.”

A Gentle Reminder: Every obstacle is a stepping stone, every morning; a chance to go again, and those little steps take you closer to your dream.

Nnamdi Okoli