Emmanuel OchayiIn response to mounting concerns from Nigerian authorities, Binance, a prominent peer-to-peer cryptocurrency exchange, has taken measures to control the selling price of the cryptocurrency stablecoin, Tether, on its platform.
This move comes amidst accusations of attempting to dictate exchange rates and hijack the role of the Central Bank of Nigeria (CBN).
Join our WhatsApp ChannelIn a blog post, Binance emphasized its commitment to a market-driven peer-to-peer (P2P) platform, clarifying that it does not intend to serve as a proxy for currency pricing in Nigeria. “Binance provides a P2P marketplace, not as a price discovery platform,” stated a spokesperson. “To protect users and prevent abuse, our system automatically pauses during significant currency movements.”
Acknowledging the need for stringent user protection measures, Binance highlighted real-time monitoring and the immediate removal of non-compliant advertisements as part of its strategy. The exchange also emphasized its cooperation with regulatory authorities, aiming to foster transparent dialogue regarding the evolving landscape of cryptocurrency and financial markets.
READ ALSO: NSA, EFCC To Collaborate With CBN To Curb Forex Crisis Amidst Economic Hardship
However, criticisms from Nigerian officials, including Presidential aide Bayo Onanuga, have intensified. Onanuga accused Binance of manipulating the national currency and called for strict action against various cryptocurrency platforms operating in the country. The Central Bank of Nigeria has been actively combatting forex speculation, recently conducting raids on Bureau de Change outlets in Abuja.
Despite regulatory pressures, Binance remains steadfast in its commitment to providing a market-driven, fraud-free platform for users. The ongoing dialogue between cryptocurrency exchanges and Nigerian authorities underscores the challenges of navigating the intersection between digital assets and traditional financial systems.
As the Central Bank of Nigeria continues its efforts to stabilize the naira amidst forex volatility, the cryptocurrency industry faces heightened scrutiny, prompting exchanges like Binance to navigate regulatory complexities while maintaining their commitment to user protection and market integrity.
Emmanuel Ochayi is a journalist. He is a graduate of the University of Lagos, School of first choice and the nations pride. Emmanuel is keen on exploring writing angles in different areas, including Business, climate change, politics, Education, and others.
Follow Us