Binance Implements Price Limit on Tether Sales in Nigeria

Date: 2024-02-22 Author: Dima Zakharov Categories: BUSINESS
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Binance's Response to Nigerian Authorities

Binance, a leading cryptocurrency exchange, has taken steps to adhere to Nigerian regulatory requirements by placing restrictions on the selling price of Tether (USDT) on its peer-to-peer platform. This move comes amidst concerns raised by Nigerian authorities regarding the devaluation of the nation's currency, the Naira.

Government Concerns Over Naira Devaluation

The Nigerian government's worries about the devaluation of the Naira prompted Binance to introduce a price limit on the sale of USDT tokens on its platform. According to this restriction, Binance clients cannot sell Tether (USDT) for more than 1802 Naira per USDT. The newly imposed price limit has resulted in the suspension of accounts of traders attempting to trade above it.

Ensuring Compliance and Preventing Abuse

Binance emphasized its commitment to complying with Nigerian authorities' requirements and ensuring user protection. The exchange stated that users engaging in malicious or manipulative behavior would face removal from the platform.

Addressing Market Concerns

Binance clarified that its peer-to-peer platform allows users to buy and sell cryptocurrencies directly with other users using fiat currencies. The price limit effectively blocks traders attempting to sell USDT above the set threshold, leading some traders to seek alternatives on other exchanges without such restrictions.

CBN's Evolving Regulations

In December 2023, the Central Bank of Nigeria (CBN) relaxed its restrictions on banks facilitating cryptocurrency transactions after imposing stringent limitations on cryptocurrency trading in 2021. Despite easing some of its rules, the CBN maintains its ban on financial institutions conducting cryptocurrency transactions using their accounts.
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