Binance Nigeria has introduced a restriction on the maximum selling price of USDT $1.00 tokens on its P2P platform to adhere to local regulatory requirements. Presently, traders on Binance are unable to sell USDT $1.00 tokens above a cap of 1,802 Naira.

The crypto exchange has informed its Nigerian users of its dedication to collaborating with local authorities, legislators, and regulators to ensure enforcement of the price cap and address any instances of non-compliance by users.

Binance P2P facilitates direct buying and selling of cryptocurrencies with Fiat currency among users.

Consequently, accounts of traders attempting to sell above the price cap have been suspended, leading them to explore alternative P2P options on other exchanges.

Exchange rate progression impacting change
In a collaborative effort, the Nigerian National Security Adviser’s Office and the Central Bank of Nigeria (CBN) launched a joint initiative aimed at curbing forex speculation and addressing challenges impacting the country’s economic stability.

The partnership highlighted the importance of tackling the detrimental impact of speculators, operating domestically and internationally through various means on the depreciation of the naira,  inflation, and overall economic instability in Nigeria.

Since the government’s decision to unify forex windows in mid-2023 resulted in a substantial depreciation of the naira, Nigeria’s fiat currency, the exchange rate has surged from approximately N700/$1 to a record high of over N1,500/$1, pushing many to explore mitigation avenues on platforms such as Binance.

In July 2023, the Nigerian Securities and Exchange Commission (SEC) cautioned local investors against utilising Binance.

The agency emphasised that the platform lacked proper licensing to operate in the country, deeming its operations illegal.

Additionally, it reminded the public of the significant risks involved, including the potential for total loss of investments.

Nigeria however has emerged as the largest P2P market globally, a development that ensued following the Central Bank of Nigeria’s prohibition of institutions from engaging in crypto transactions in 2021.

Though a circular issued to banks in December 2023 lifted the ban, enabling Nigerian banks to facilitate cryptocurrency transactions.

Numerous Nigerians grappling with foreign exchange transactions encounter challenges when utilising traditional banking and Bureau de Change (BDC) avenues.

This is attributed to considerably higher fees associated with transferring foreign currency within the banking system compared to the crypto market, rendering P2P transfers a more appealing option.