Binance Removes Naira from P2P Platform Amid Government Scrutiny

Janet F. Sanchez -

Binance, a leading cryptocurrency trading platform, has decided to remove the Nigerian currency, the naira, from its peer-to-peer (P2P) feature. This move follows claims by Nigerian authorities that Binance's platform contributed to the devaluation of the naira.

Nigerian Users Express Concerns

Users of Binance in Nigeria have voiced their concerns and complaints about this development on social platforms. The decision to remove the naira from the P2P market comes after presidential adviser Bayo Onanuga warned that Binance could potentially harm the Nigerian economy by arbitrarily fixing foreign exchange rates.

Background and Impact

The P2P feature allows users to trade directly with each other without involving a third party. It gained popularity in Nigeria in 2021 after the government banned the country's thriving crypto industry. The rapid decline of the naira and the resulting high inflation rate of almost 30% have led the government to focus on platforms offering cryptocurrency services, which have been instrumental in establishing an informal value for the naira.

Recent Developments

Users in Nigeria had previously reported difficulties accessing various crypto exchange websites, including Binance. Additionally, Binance imposed a limit on the selling price of Tether tokens on its P2P platform, causing further frustration among traders.

Increased Scrutiny and Reactions

Binance is facing increased scrutiny in Nigeria, with the Central Bank expressing concerns about suspicious fund flows through Binance Nigeria in 2023. Reports also indicate that two senior Binance officials have been detained by the National Security Adviser's office in Abuja as part of the government's crackdown on cryptocurrency exchanges.

Conclusion

Local crypto analysts have criticized the government's approach, arguing that focusing on cryptocurrencies instead of addressing manufacturing and exporting issues will not solve Nigeria's financial problems. As the situation unfolds, Binance has been contacted for comment on these developments.