- Binance collaborates with Federal Government to regulate dollar-naira trading, emphasizing compliance with regulations and warning against manipulative behaviour
- Binance implements regulatory measures, including setting upper limits for ads, filtering inappropriate ads, and taking action against market manipulators
Binance, the world’s largest cryptocurrency trading platform, has announced its collaboration with the Federal Government to regulate dollar-naira trading.
In a statement released on Tuesday regarding its commitment to users in Nigeria, Binance emphasized its efforts to work closely with local authorities, lawmakers, and regulators to ensure compliance with regulations. The platform warned that users engaging in manipulative behaviour would face removal from the platform.
As part of its regulatory measures, Binance outlined several actions, including setting upper limits for ads, filtering and removing inappropriate ads, increasing deposits for merchants posting ads, and taking action against market manipulators.
On Tuesday, Binance restricted certain functionalities for Nigerian users, including disabling the sell option for fiat currency USDT and capping the buy option at $1802. Additionally, it disabled the purchase of cryptocurrencies via peer-to-peer (P2P) trading, leaving users unable to sell their crypto assets such as Bitcoin, BNB, and Ethereum through P2P transactions.
The Nigerian naira has continued its downward spiral, with exchange rates surpassing N1,500 and exceeding N1,800 against the dollar in both the official and parallel markets on Tuesday. Despite efforts by the federal government to stabilize the situation, the economy is facing significant challenges, leading to hardships for millions of Nigerians due to rising commodity prices.
In June 2023, the Central Bank of Nigeria (CBN) implemented a free-floating policy to liberalize the naira, allowing market forces to determine its value to improve liquidity and boost investor confidence. However, instead of bringing about positive outcomes, this decision has further devalued the currency and exacerbated the economic crisis, pushing more Nigerians into poverty.