“Cannot Sell Above N1,802/USDT”: Binance Introduces Limit as FG Mulls Blocking Its Operations
- Binance cryptocurrency exchange has put a N1,802 naira per USDT cap on the trading of Tether
- It further stated its readiness to work closely with Nigerian authorities to ensure the removal of abnormal prices
- This came after a report that the Nigerian government was contemplating blocking the online crypto platforms
Legit.ng journalist Zainab Iwayemi has over three years of experience covering the Economy, Technology, and Capital Market.
In a bid to cooperate with Nigerian authorities, peer-to-peer exchange, Binance has set a price cap on selling cryptocurrency stablecoin, Tether, on its platform.
Source: UGC
According to a coin telegraph report, traders on Binance currently cannot sell USDT above a 1,802 naira per USDT cap.
In a post on its X page, Binance stated that its P2P platform is driven by the market, not by Nigerian currency rates.
PAY ATTENTION: Сheck out news that is picked exactly for YOU ➡️ find the “Recommended for you” block on the home page and enjoy!
It said:
“Binance provides a P2P marketplace, not as a price discovery platform. To be clear, it is market-driven and is not intended to be a proxy for currency pricing in Nigeria.
“To protect users and to prevent any abuse, our system automatically pauses in the event of a period of significant currency movement.
“Late last night, we observed a temporary suppression of prices that briefly reached our system limit. We quickly made the necessary adjustments to allow trading to continue.”
Prompt removal of abnormal prices
The company also said it had implemented strict safeguards, such as real-time monitoring, prompt removal of non-compliant adverts, and permanent removal of bad actors from its P2P offering, to safeguard users in the market.
It added:
“Continuous market surveillance ensures the prompt removal of abnormal prices, supported by a fixed security deposit.”
Binance also said the foreign exchange rates are influenced by various complex factors.
“However, we continue actively engaging with regulators, policymakers, and other relevant stakeholders to foster an open, transparent dialogue about managing the evolving landscape of cryptocurrency and financial markets.
“We remain dedicated to providing market-driven, fraud-free, and manipulation-free products for users. We take our responsibility to protect users and their confidential data very seriously.”
Legit.ng earlier reported that the Nigerian government was contemplating blocking the online platforms of Binance and other cryptocurrency companies to prevent alleged manipulation of the foreign exchange market and illicit financial transfers.
This came as the naira reached an all-time low of N1,815 to a dollar on the black market due to the recent unprecedented depreciation of the Nigerian currency.
On Tuesday, traders in the black market told Legit.ng that they sold the naira for N1,830 per dollar.
NCC orders telcos to block Binance
Legit.ng also reported that the Nigerian Communications Commission directed MTN, Glo, and other telecommunication networks to block Binance.
The telcos received a directive from the commission today, a reputable source in the telecom sector revealed to BusinessDay.
This move came as the Nigerian government was contemplating sanctioning cryptocurrency platforms over alleged manipulation of the foreign exchange market and illicit financial transfers.
PAY ATTENTION: Unlock the best of Legit.ng on Pinterest! Subscribe now and get your daily inspiration!
Source: Legit.ng
