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In a move to comply with Nigerian authorities and address concerns about the depreciation of the Nigerian currency, Binance, the popular cryptocurrency exchange, has implemented a cap on the selling price of Tether (USDT) on its peer-to-peer (P2P) trading platform.
This price limit, set at 1,802 naira per USDT, aims to prevent speculators and money launderers from exploiting the platform and contributing to the devaluation of the Nigerian Naira.
Binance’s decision to impose the selling price cap has resulted in the blocking of traders’ accounts attempting to sell USDT above the limit.
The exchange has made it clear that it is working closely with Nigerian authorities, lawmakers, and regulators to ensure that users who do not adhere to the price cap face appropriate consequences. The P2P platform offered by Binance allows users to directly buy and sell cryptocurrencies for fiat with other users.
However, the introduction of the price cap has led some traders to seek alternative exchanges where they can sell USDT without restrictions.
Addressing concerns about its integrity, Binance clarified that the pegged rate to NGN/USDT trading is a result of an automatic system pause triggered by significant currency movement.
The exchange assured users that their funds are secure and emphasized that the P2P marketplace is not intended to serve as a proxy for currency pricing in Nigeria.
This development comes after the Central Bank of Nigeria (CBN) relaxed its restrictions on banks facilitating cryptocurrency transactions in December 2023.
The CBN had previously imposed stringent measures on crypto trading, but global trends and demands prompted a re-evaluation of its stance.
While the CBN lifted the ban on banks operating accounts for virtual asset service providers (VASPs), it maintains its prohibition on financial institutions holding, trading, or conducting crypto transactions using their own accounts.
