Is the Central Bank of Nigeria Cracking Down on Binance P2P Exchange Rates?
Speculation is rife in the crypto community after Changpeng Zhao, co-founder of Binance, made a cryptic comment on Twitter. Many believe that the Central Bank of Nigeria (CBN) is cracking down on Binance’s peer-to-peer (P2P) exchange rates.
Why Crypto Services Are Popular in Nigeria
In developing countries like Nigeria, people often turn to crypto services for easy and convenient transactions. This is one of the reasons why cryptocurrency has gained popularity in Nigeria.
USDT Falls Against Nigerian Naira on Binance
A screenshot from Binance shows that USDT has experienced a significant drop of over 30% against the Nigerian currency, the naira (NGN).
Some believe that the naira is strengthening due to the CBN clearing its forex backlog. The CBN has reportedly settled its debts with three banks, which amount to $6.7 billion.
However, as USDT continues to decline against the naira, there are suspicions that the CBN is trading on Binance P2P to further drive down the USDT rate.
Concerns from the Community
A user on Twitter expressed concern about the situation, questioning whether the CBN is selling USDT on Binance P2P to manipulate prices and create a price dump.
“Looks like a joke, but if CBN is really selling USDT on Binance P2P to trigger a price dump, then we are in more trouble than we imagined.
“This is what the Apex bank is doing? REALLY??”
Binance Faces Criticism in Nigeria
In August, the Association of Bureaux de Change Operators of Nigeria (ABCON) called for a ban on Binance, claiming that it puts pressure on the naira. The president of ABCON stated that Binance trading has become a significant factor affecting both investors and exporters, and something needs to be done to stop it.
Changpeng Zhao’s Cryptic Tweet
Adding fuel to the speculation, Changpeng Zhao posted an emoji of the Nigerian flag on Twitter.
Hot Take: CBN’s Potential Crackdown on Binance P2P Exchange Rates
The crypto community is buzzing with speculation about the Central Bank of Nigeria’s actions against Binance’s peer-to-peer exchange rates. The significant drop of USDT against the Nigerian naira on Binance has raised concerns and led to theories that the CBN may be trading on the platform to manipulate prices. This comes after calls for a ban on Binance in Nigeria due to its impact on the naira. Changpeng Zhao’s cryptic tweet featuring the Nigerian flag has only added to the speculation. As the situation unfolds, many are questioning the motives and implications of the CBN’s potential crackdown.
By
By
By
By
By