Binance has set a limit on the selling price of Tether USDT Tickers down $1.00 tokens on its peer-to-peer (P2P) platform to ensure compliance with local authorities in Nigeria. Traders on Binance cannot currently sell USDT above a 1,802 naira per USDT cap.
Peer-to-peer exchange, Binance, has capped the selling price of cryptocurrency stablecoin, Tether, on its platform even as it revealed its preparedness to work with Nigerian authorities.
According to Binance in a blog post on its website on
Wednesday, its P-2-P platform is market-driven and not for currency pricing in
Nigeria.
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.”
It declared that it had stringent measures in place to
protect users in the market, including real-time monitoring, immediate removal
of non-compliant advertisements, and permanent removal of bad actors from using
its P2P product.
“Continuous market surveillance ensures the prompt removal
of abnormal prices, supported by a fixed security deposit,” it added.
Binance further revealed that it would continue to work with
regulatory authorities, saying, “It is important to note that foreign exchange
rates are influenced by various complex factors, which Binance does not
influence on.
“However, we continue to actively engage 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.”
Presidential aide, Bayo Onanuga, had lashed out at Binance
on Wednesday, saying, “It was blatantly setting exchange rate for Nigeria,
hijacking CBN role.
“Binance, facing regulatory showdown in many countries, and
causing disruptions in the currency market, should not be allowed to dictate
the value of the naira, not on its crypto exchange platform. Other crypto
platforms such as Kucoin, and Bybit should be banned from operating in our
cyberspace. FX platform Aboki should be re-banned.
“The EFCC and the CBN should move against these platforms
trying to manipulate our national currency to Ground Zero. Crypto should be
banned in our country or else this bleeding of our currency will continue
unabated.”
The Central Bank of Nigeria has been making concerted
efforts in recent times to tackle forex speculation and its effects on the
Nigerian currency.
On Monday, operatives of the Economic and Financial Crimes
Commission raided some bureau de change outlets in Abuja, arresting currency
traders suspected to be speculating against the naira.
On the official window, the naira closed at 1551.24/$ on Tuesday.
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