Binance accepts USDT price cap to comply with local laws in Nigeria

Binance has set a limit on the sale price of Tether (USDT) tokens on its peer-to-peer (P2P) platform in Nigeria to ensure compliance with local authorities. Traders on Binance cannot sell USDT for more than 1,802 Naira per USDT cap.

The crypto exchange said it is committed to working hand-in-hand with local authorities, legislators and regulators to ensure its users in Nigeria take action on non-compliance with consumer prices. Binance P2P allows users to buy and sell crypto for fiat currency directly with other users.

The price adjustment blocked the accounts of traders who tried to sell above it, leading traders to trade freely without restrictions to other exchanges.

We are committed to providing users with a market-based platform and working hand-in-hand with local authorities and regulators.

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— Binance Africa (@BinanceAfrica) February 20, 2024

The Office of the National Security Adviser in Nigeria has partnered with the Central Bank of Nigeria (CBN) to launch a joint effort to combat forex speculation and address issues affecting the country's economic stability.

The initiative shows that appraisers – operating in various ways both locally and internationally – have played a significant role in the devaluation of the nara, fueling inflation and economic instability in Nigeria.

In the year In mid-2023, the integration of the Nigerian government's forex windows has led to the weakening of the naira in the top foreign exchange market against the US dollar, which has doubled from about 700 naira/$1 to an all-time high of over 1,500 naira/$1. $1.

In July 2023, the Nigerian Securities and Exchange Commission (SEC) warned local investors against using Binance. The agency stated that the platform does not have a license to operate in the country and its operation is illegal. He also reminded the public about the high risk and total loss of investment.

Related: Nigeria asked to regulate cryptocurrency to control financial crimes

Nigeria is currently the largest P2P market in the world, this is after the Central Bank of Nigeria banned institutions from buying and selling in 2021. However, a circular sent to banks in December 2023 lifted the crypto ban on Nigerian banks facilitating cryptocurrency transactions. .

Many Nigerians dealing with foreign exchange struggle to transact through traditional banking and bureau de change channels. This is due to higher fees for transferring foreign currency in the banking system than in the crypto market, making P2P transfers more attractive.

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