Nigerian Crypto Exchanges Halt Naira Purchases of USDT and USDC Amid Central Bank Scrutiny
Several crypto companies in Nigeria have decided to disallow users from buying the Tether (USDT) and USD Coin (USDC) stablecoins with Naira due to increased scrutiny from the Central Bank of Nigeria (CBN). Regulators are concerned about speculative trading and market manipulation facilitated by crypto platforms.
Two Exchanges Ordered to Pause Naira Purchases
At least two crypto exchanges have already informed their Nigerian customers about the new development, suspending the trading of USDT and USDC with Naira. Notifications sent to customers explicitly stated that buying and selling these stablecoins with Naira is no longer possible.
- Crypto exchanges facing regulatory scrutiny
- Difficulties accessing popular platforms like Coinbase, Quidax, and Binance
- Central Bank governor claims $26 billion passed through Binance Nigeria from unidentified sources
- Digital Currency Coalition alleges speculative trading played a significant role in Naira devaluation against USDT
- Unverified reports suggest arrest of two crypto company executives
Binance Implements Price Cap for USDT
Binance has introduced a price cap for Tether (USDT) tokens on its peer-to-peer (P2P) platform in Nigeria to comply with local regulatory requirements. Traders on Binance’s P2P platform are restricted from selling USDT above the set cap of 1,802 naira per USDT. Accounts attempting to sell USDT above this limit are blocked.
Hot Take: Nigerian Crypto Exchanges Navigate Regulatory Pressure
Nigerian crypto exchanges are treading cautiously amidst regulatory pressure and uncertainty. Employees have reportedly received instructions not to wear company-branded apparel or attend events related to platforms like Binance. This echoes the sentiments felt last year when the Securities Exchange Commission declared Binance’s operations illegal in the country.
Binance’s implementation of a price cap for USDT on its P2P platform is a response to comply with local regulations. Nigeria, being the most crypto-savvy nation according to a recent survey, is navigating the challenges of regulatory scrutiny while maintaining its position as a leader in digital asset knowledge and perceived investment drive.
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