Binance Announces It Has Placed a Cap on How Nigerian Traders Who Sell USDT on the Platform

Binance, the world's leading cryptocurrency trading platform, has announced that it has become mandatory to address the unusual currency trend on its platform, even though the platform has long distanced itself from the forex debate on how the Nigerian naira is quoted against the dollar on its platform.

However, there was speculation that the Central Bank of Nigeria and other financial regulatory agencies in Nigeria have told Binance to place a cap on Nigerian traders who sell USDT on the platform.

On Wednesday, the crypto platform published on the Binance Blog that it has distanced itself from such a report, stating that its peer-to-peer (P2P) product is still operational but with adjustments.

It reads,

"To protect users and prevent any abuse, our system automatically pauses in the event 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 said.

It was also announced that Binance is collaborating with legislators and authorities to preserve openness in cryptocurrency trading and its effects on the financial markets, emphasising that Binance does not influence foreign exchange prices.

"It is important to note that foreign exchange rates are influenced by various complex factors, which Binance does not influence. However, we continue actively engaging with regulators, policymakers, and other relevant stakeholders to foster an open, transparent dialogue about managing the evolving landscape of cryptocurrency and financial markets.

"Again, we encourage users and the community to disregard any unfounded fears or uncertainties and appreciate the ongoing support as we navigate the dynamic market conditions. We will continue to provide updates through our official channels, as necessary," it explained.