Binance Distances Platform From The Forex Debacle in Nigeria
One of the world’s leading cryptocurrency exchange platforms, Binance, has distanced itself from the Forex crisis in Nigeria, stating that the platform is market-driven and not intended to be a proxy for currency pricing in Nigeria.
Binance’s statement is coming following complaints from Nigerians of facing restrictions with buying and selling USDT on the platform. Also, the development comes amidst unconfirmed reports that the Central Bank of Nigeria (CBN) in collaboration with other government agencies had ordered Binance to set a cap on Nigerian traders selling USDT.
Debunking these allegations, Binance wrote via blog post,
“Don’t believe the FUD. We would like to assure users that their funds are secure and our peer-to-peer (P2P) product remains operational. 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.
“We have 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 our P2P product. Continuous market surveillance ensures the prompt removal of abnormal prices, supported by a fixed security
deposit. It is important to note that foreign exchange rates are influenced by various complex factors, which Binance does not influence.
“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.”
As the Naira continues to fall steadily against the dollar, it is understood that a lot of Nigerians are now saving their money in dollars to safeguard the value of their savings and assets, especially those denominated in foreign currency.
