Binance, a leading cryptocurrency trading platform, has declared its intention to cease all operations involving the Nigerian naira. The platform faced criticism for its alleged role in the devaluation of the Naira.
Moreover, Binance is also contending with serious accusations, including facilitating terrorism financing, engaging in money laundering activities, and evading taxes.
This decision comes in the wake of escalating concerns regarding the devaluation of the naira and the broader impact on the Nigerian economy. The removal of the naira from Binance's P2P market is a response to allegations from Nigerian authorities that the platform was contributing to the currency's depreciation.
Despite Binance's explanation that P2P exchange rates are set by individual users and not by the platform itself, the Nigerian government has intensified its regulatory scrutiny over cryptocurrency operations, including imposing restrictions on Binance and other crypto services.
In addition to the P2P service change, Binance has introduced a cap on the selling price of Tether (USDT) tokens on its P2P platform, limiting transactions to a maximum rate of 1,802 NGN per USDT.
Nigeria is one of the largest peer-to-peer crypto markets in the world. Between July 2022 and June 2023, crypto transactions in the country reached $56.7bn, according to Chainalysis.
This measure, explained as a precaution against automated system disruptions, has sparked debate within the local crypto community, with some viewing it as an unnecessary intervention in the market dynamics.
The backdrop to these developments includes a broader governmental crackdown on cryptocurrency exchanges, motivated
