Binance has limited the selling price of Tether USDT$1.00 tokens on its peer-to-peer (P2P) network to comply with Nigerian regulations. Traders on Binance cannot presently sell USDT for more than 1,802 naira per USDT.
The cryptocurrency exchange told its Nigerian users that it is dedicated to collaborating with local authorities, MPs, and regulators to guarantee that users who do not comply with the price cap are held accountable. Binance P2P enables users to purchase and trade cryptocurrency for fiat currency directly with other users.
The price cap prevented traders from selling above it, forcing them to move to other exchanges where they could trade freely without restrictions.
We are dedicated to providing a market-driven platform for users, as well as working hand in hand with local authorities and regulators.
— Binance Africa (@BinanceAfrica) February 20, 2024
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Nigeria’s Office of the National Security Adviser, in partnership with the Central Bank of Nigeria (CBN), has launched a combined effort to combat FX speculation and address concerns threatening the country’s economic stability.
The program emphasizes that speculators’ activities, both domestically and internationally, have contributed significantly to the naira’s depreciation, aggravating inflation and causing economic instability in Nigeria.
The Nigerian government’s unification of forex windows in mid-2023 resulted in a substantial drop of the naira against the US dollar on the foreign exchange rate market, which doubled from around 700 naira/$1 to a historic high of more than 1,500 naira/$1.
The impact of this decision on the Nigerian cryptocurrency market remains to be seen. Some stakeholders view it positively, citing its potential to stabilize prices and foster trust in the ecosystem. Others express concerns about its potential to limit market access and stifle innovation. It’s crucial to observe how this development unfolds and its impact on both users and the wider cryptocurrency landscape in Nigeria.
Remember, cryptocurrency regulations are constantly evolving, and it’s crucial to stay informed about the latest developments to make informed investment decisions. While Binance’s price cap represents a significant step towards compliance, it’s just one piece of a complex puzzle in regulating a rapidly evolving technology like cryptocurrency.
