Experts React as Binance Claims it Didn’t Limit the USD/NGN Rate at $1802. In reaction to the most recent information on the suppression of USDT/NGN rates on its peer-to-peer marketplace, cryptocurrency exchange Binance has responded. In an early Wednesday morning announcement, Binance advised its users not to trust the FUD “Fear Uncertainty and Doubt.”
Experts React as Binance Claims it Didn’t Limit the USD/NGN Rate at $1802
The company stated that its system automatically pauses in the case of a time of high currency movement to safeguard users and avoid any exploitation. Technext can confirm that, in conjunction with that announcement, the naira is currently trading on the Binance p2p platform at nearly N1900 against the US dollar, as opposed to what was available on the platform last night, when traders were prohibited from updating buy/sell rates above $1802, even after the rate had exceeded that on other platforms and exchanges.
However, Binance noted in this latest release that it is still actively interacting with legislators, regulators, and other pertinent parties to promote an honest and open discussion about how to manage the rapidly changing cryptocurrency and financial market environments.
The fact that the Nigerian Naira has been falling at an unprecedented rate is no longer news. The Central Bank of Nigeria (CBN) and other Nigerian authorities have been forced to adopt strict measures against foreign exchange (FX) players due to this challenge, which has caused inflation and extensive economic harm.
P2P merchants on Binance observed they could not update buy/sell rates above $1802, even after the rate had gone above that on other platforms and exchanges, earlier on Tuesday, following the record low of the Nigerian Naira to the US dollar.
Nigerian Officials Colluded with Binance to Limit Peer-To-Peer Trading on the Site Rescuing the Falling Naira
Following that incident, there were rumors that to rescue the falling naira, Nigerian officials colluded with Binance to limit peer-to-peer trading on the site. To inflame such feelings, Binance released a statement stating that it is still collaborating closely with legislators, local authorities, and regulators to ensure that non-compliance is addressed.
The biggest cryptocurrency exchange in the world also prevented its Nigerian users from purchasing cryptocurrencies through peer-to-peer trading, which left anyone who might have wanted to sell their cryptocurrency holdings trapped.
This is just another desperate attempt by the administration of Bola Tinubu to stop the naira’s plunge against the dollar. Remember how the Economic and Financial Crimes Commission (EFCC) nabbed alleged foreign exchange speculators at a well-known Bureau De Change office in Abuja on Monday?
Tuesday was also marked by a directive from National Security Advisor Nuhu Ribadu to law enforcement to take decisive action against foreign exchange market speculators.
Macroeconomic Issues Bear Greater Responsibility for the Falling Value of the Native Currency
As was to be expected, these changes have generated debate. Some believe that the naira’s free slide is being driven by peer-to-peer operations on Binance, while others assert that macroeconomic issues are more to blame for the collapse of the local currency.
Some cryptocurrency traders claim that Binance “betrayed the trust” of its clients when it disabled the sale option for its Nigerian users, prevented them from selling fiat money, USDT, on the platform, and capped the buy option at $1802.
Chris Ani, a well-known figure in the Nigerian cryptocurrency scene, warned that this restriction would not stop the naira from plummeting and further blamed the move on “mediocrity” in his comments on the issue on X (Twitter).
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