The cryptocurrency stablecoin Tether’s selling price on Binance’s peer-to-peer exchange has been capped, as the company has also stated that it is willing to cooperate with Nigerian authorities.
In a blog post published on Wednesday, Binance stated that its P-2-P platform is driven by the market and not by Nigerian currency rates.
“Binance serves as a P2P marketplace, not as a price discovery platform. To be clear, it is not meant to be a stand-in for Nigerian currency price; rather, it is determined by the market,” the statement read.
“In the event of a period of significant currency movement, our system automatically pauses to protect users and prevent any abuse.”
“We noticed a brief suppression of pricing late last night that came close to hitting our system limit. We swiftly made the required changes so that trade could resume.”
It stated that it had implemented strict safeguards, such as real-time monitoring, prompt removal of noncompliant adverts, and permanent removal of rogue actors from its P2P offering, to safeguard users in the market.
It further stated, “A fixed security deposit is used to support the prompt removal of abnormal prices through continuous market surveillance.”
“It is important to note that foreign exchange rates are influenced by various complex factors, which Binance does not influence on,” Binance said, revealing that it will keep collaborating with regulatory bodies.
“We are committed to offering consumers products that are driven by the market, free from fraud and manipulation. We take seriously our obligation to safeguard users’ private information.
On Wednesday, a presidential aide, Bayo Onanuga, slammed Binance, claiming that it was “blatantly setting exchange rate for Nigeria, hijacking CBN role.”
“The value of the naira should not be set by Binance, which is in hot water with regulators in numerous nations and is upsetting the currency market, not on its cryptocurrency exchange platform. The use of other cryptocurrency platforms like Bybit and Kucoin in our cyberspace ought to be prohibited from operating in our cyberspace. FX platform Aboki should be re-banned.
Accordiing to him, “These platforms that are attempting to manipulate our national currency should be taken down to zero by the EFCC and the CBN, If cryptocurrency is not outlawed in our nation, the depreciation of our currency will not stop.”
Recently, the Central Bank of Nigeria has been working hard to address forex speculation and how it affects the value of the Nigerian Naira.
Agents of the Economic and Financial Crimes Commission detained currency dealers on Monday during raids on several bureau de change locations in Abuja. The dealers were thought to be engaging in naira-denomination speculation.
The naira closed at 1551.24/$ on Tuesday on the official window.
