Binance Imposes Limits on Tether Selling Price, Commits to Cooperation with Nigerian Authorities

 


Cryptocurrency exchange platform Binance has decided to cap the selling price of the stablecoin Tether on its platform. The decision comes as Binance expresses its willingness to collaborate with Nigerian authorities.


In a blog post on Wednesday, Binance clarified that its peer-to-peer (P2P) platform operates on a market-driven basis and is not intended for currency pricing in Nigeria. The platform automatically pauses in the event of significant currency movement to protect users and prevent abuse.


The post stated, "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."


Binance emphasized that it has robust measures in place to protect users in the market. These include real-time monitoring, immediate removal of non-compliant advertisements, and permanent removal of bad actors from using its P2P product. The platform also conducts continuous market surveillance to promptly remove abnormal prices, supported by a fixed security deposit.


Regarding regulatory compliance, Binance highlighted its ongoing engagement with regulators, policymakers, and other stakeholders. The platform aims to foster an open and transparent dialogue about managing the evolving landscape of cryptocurrency and financial markets.


Binance reaffirmed its commitment to providing market-driven, fraud-free, and manipulation-free products for users. It emphasized its responsibility to protect users and their confidential data.


The move comes in response to recent criticism from presidential aide Bayo Onanuga, who accused Binance of setting exchange rates for Nigeria and hijacking the role of the Central Bank of Nigeria (CBN). Onanuga called for the banning of crypto platforms like Binance, Kucoin, Bybit, and FX platform Aboki, accusing them of manipulating the naira.


The CBN has been actively addressing forex speculation and its impact on the Nigerian currency. Recently, the Economic and Financial Crimes Commission (EFCC) raided bureau de change outlets in Abuja, arresting currency traders suspected of speculating against the naira.


As of Tuesday, the naira closed at 1551.24/$ on the official window

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