Users of the Binance P2P service are unable to complete their trades on the platform with allegations that the government is interfering with the platform as the local Naira fluctuates.
The Naira fell sharply against the dollar on February 20 2024 from N1,500 to N1,600 while local reports indicate that the currency fell to an all-time low of N1,800 to a dollar in the parallel market.
What is happening to the #Nigerian #Naira pic.twitter.com/31KamaH0xq
— BitKE (@BitcoinKE) February 22, 2024
Going by several complaints by users on social media, Binance was either not working well for some users while others complained of the lack of ads to buy the USDT stablecoin. Users took to social media to complain about the app not working.
Anybody having problem with opening @binance from Nigeria?
I am hearing rumors that you can only now access Binance app with VPN from Nigeria.
I just hope they haven’t blocked @binance in Nigeria pic.twitter.com/Q1LxSM3x0k
— CryptoLord NE 📊📈 (@CryptoDefiLord) February 21, 2024
Binance P2P which is one of the main ways for locals to purchase cryptocurrencies such as stablecoins to protect their value, is seen by the government as contributing significantly to the weakening of the Naira.
According to a local report, the government decided to move against Binance and other crypto firms following reports that currency speculators and money launderers were using them to execute criminal activities.
Among the speculations is that the apex bank could use telcos to block access to those websites and apps in Nigeria, while the Central Bank of Nigeria allegedly ordered Binance to set a cap on traders selling USDT according to a popular tweet by X user, Brother Bernard.
The CBN, in conjunction with the NSA, EFCC and other govt parastatals allegedly ordered Binance to set a cap on traders selling USDT.
You can no longer sell your OWN tokens for above 1802/$.
This is why nobody had been able to buy tokens today.
I don’t know what they aim to… pic.twitter.com/KIvZdfelo7
— Brother Bernard (@MikaelCBernard) February 20, 2024
Amid the controversy, Binance released a statement saying it is ‘dedicated to providing a market-driven, fraud-free, and manipulation-free platform for users.’
“We are always investing in improving our processes and tools, which includes setting an upper limit for ads, filtering and removing bad ads, requiring and raising deposits for merchants posting ads as well as processes for actioning against any market manipulators.”
The latest developments come only a few months after the Central Bank of Nigeria lifted a ban on financial institutions and banks against dealing with crypto exchanges, and other crypto asset providers.
According to a circular sent to banks on December 22 2023, the apex bank acknowledged that the escalating global demand and acceptance of cryptocurrencies render it unreasonable to uphold the strict limitations imposed on financial institutions in 2021.
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