Binance, a cryptocurrency trading platform, has removed the Nigerian currency, the naira, from its peer-to-peer (P2P) service amid the Nigerian government’s crackdown on the exchange. This decision comes as the government seeks $10 billion in compensation to stabilize the local currency.
In a BBC interview on March 1, Bayo Onanuga, President Bola Tinubu’s special adviser, voiced concerns about Binance’s impact on the Nigerian economy, citing arbitrary foreign exchange rate fixes. The government has intensified efforts to regulate platforms providing cryptocurrency services due to the rapid decline of the naira and high inflation.
The removal of the naira from Binance’s P2P service affects crypto users in Nigeria, who had relied on such platforms following the government’s ban on the country’s crypto industry in 2021. Users reported difficulties accessing various exchange websites, including Binance and OctaFX. Binance also imposed limits on the selling price of Tether (USDT) tokens on its P2P platform, leading to trading disruptions.
Binance faces increased scrutiny from the Central Bank of Nigeria (CBN) over suspicious fund flows through its Nigerian branch in 2023. CBN head Olayemi Cardoso highlighted $26 billion in transactions of unidentified origin passing through Nigeria via Binance. Additionally, reports indicate that two senior Binance officials have been detained by the National Security Adviser’s office in Abuja.
Local crypto analysts criticize the government’s approach to cryptocurrency regulation, expressing disappointment in its failure to address foreign exchange challenges. They argue that continued antagonism toward cryptocurrencies hinders efforts to resolve financial issues and prioritize manufacturing and exports.
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