Binance Caps Tether Selling Price on P2P Platform to Comply with Nigerian Authorities
Cryptocurrency exchange Binance has set a maximum selling price for Tether (USDT) on its peer-to-peer (P2P) trading platform in order to comply with Nigerian authorities. The move comes amid concerns about the devaluation of the Nigerian currency. Binance has implemented a cap of 1,802 naira per USDT, preventing traders from selling above this price. The exchange’s decision is aimed at mitigating the negative impact caused by speculators and money launderers who exploit the platform, contributing to the depreciation of the Nigerian Naira. Nigerian authorities are considering stricter measures against crypto firms facilitating such trades.
Nigerian Government Worried About Depreciating Naira
Binance has introduced a price limit for USDT tokens on its P2P platform to comply with Nigerian authorities. Here’s what you need to know:
– Binance customers cannot sell Tether (USDT) above 1,802 naira per USDT.
– Traders trying to trade above this limit have had their accounts blocked.
– The exchange is concerned that speculators and money launderers are contributing to the devaluation of the Nigerian Naira.
– Nigerian authorities are considering stricter measures against crypto firms facilitating such trades.
– Binance is working with local authorities, lawmakers, and regulators to ensure compliance.
– Users behaving maliciously or manipulatively will be removed from the platform.
Nigerian Central Bank Relaxes Crypto Rules
In December 2023, the Central Bank of Nigeria (CBN) relaxed its restrictions on banks facilitating cryptocurrency transactions. Initially, the CBN had imposed strict regulations, ordering deposit-taking financial institutions to close accounts related to crypto exchanges. However, due to global trends and demands, the CBN re-evaluated its stance and acknowledged the need for regulation of virtual asset service providers (VASPs). While some restrictions have been lifted, the CBN continues to ban financial institutions from holding, trading, or conducting crypto transactions using their own accounts. Guidelines have been published for banks operating with VASPs, allowing naira-based accounts but prohibiting cash withdrawals.
Hot Take: Protecting Users and Complying with Regulations
By capping the selling price of Tether (USDT) on its P2P platform, Binance aims to protect users from manipulation and comply with Nigerian authorities. Here’s what you should consider:
– Binance is committed to providing a fraud-free and manipulation-free platform.
– The price cap blocks accounts of traders attempting to sell USDT above the limit.
– Binance assures users that their funds are secure and its P2P product remains operational.
– The exchange’s P2P marketplace is market-driven, not a proxy for currency pricing in Nigeria.
– The Nigerian government is focused on combating the devaluation of the Nigerian Naira.
– The Central Bank of Nigeria has relaxed some crypto rules but maintains certain restrictions on financial institutions.
– Binance continues to work closely with local authorities and regulators to ensure compliance and protect users’ interests.
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