The price cap prevented traders from selling above it, forcing them to switch to other exchanges where they could transact without limitations. To comply with Nigerian local authorities, Binance has placed a $1.00 cap on the selling price of Tether USDT tickers down on its peer-to-peer (P2P) network.
Currently, traders on Binance are only able to sell USDT for a ceiling of 1,802 naira per USDT. The cryptocurrency exchange assured its Nigerian users that it would collaborate closely with legislators, local authorities, and regulators to make sure that users who violate the price cap are taken seriously. Users can transact directly with other users to buy and sell cryptocurrency for fiat money using Binance P2P.
Binance States That Trading Was Still Possible Since The New Regulations Had Been Made
The price cap prevented traders from selling above it, forcing them to switch to other exchanges where they could transact without limitations. Binance responded to claims that it had capitulated to the Nigerian government’s demands for FX control by stating that an “automatic system pause” was the reason behind the P2P price peg to NGN/USDT trading.
The exchange stressed that the suppression of prices is only temporary and that trading is still possible because required modifications have been made. The exchange also claimed that its system automatically stops in the case of a period of considerable currency volatility.
The Central Bank of Nigeria (CBN) and the Office of the National Security Adviser in Nigeria launched a cooperative effort to address the problems harming the nation’s economic stability and stop FX speculation. The campaign emphasizes how speculators’ actions, both locally and abroad and via various channels, have contributed significantly to the depreciation of the naira, escalating inflation and creating economic instability in Nigeria. The naira significantly declined against the US dollar on the foreign exchange rate market when the Nigerian government unified the forex windows in the middle of 2023. It doubled from roughly 700 naira/$1 to a record high of over 1,500 naira/$1.
