Forex Crisis: Binance Disables The Naira Feature On Its P2P Market
The popular cryptocurrency exchange Binance, which has over 170 million users globally, has disabled its peer-to-peer functionality for users in Nigeria.
The network enables users, buyers, and sellers to transact without the involvement of a third party and is referred to as the P2P market. After the former president Buhari's administration banned the nation's thriving cryptocurrency industry in 2021, it became more and more popular among Nigerians.
The FG turned its focus to websites that provided cryptocurrency services after the naira quickly depreciated, which led to inflation rising to a nearly three-decade high of 29.9%. These websites are now a practical means of conducting business and establishing an unofficial value for the naira.
The $26 billion that came through Binance Nigeria from “unidentified sources” the year before raised concerns from the Central Bank of Nigeria.
The head of CBN further recommended that in order to counter such illicit financial activities, the Securities and Exchange Commission (SEC), the Police, the Office of the National Security Adviser (NSA), and the Economic and Financial Crimes Commission (EFCC) collaborate.
The Federal government recently took down the websites of Binance and other cryptocurrency companies in an effort to curb what it sees as continuous manipulation of the foreign exchange market and illegal money transfers.
Nigeria is looking to crack down on cryptocurrency exchanges in an effort to curb naira speculation, and two senior Binance officials have been detained in the country.
The CEOs flew to Nigeria following the country's decision last week to ban a number of bitcoin trading websites. Nevertheless, they were detained and had their passports seized by the office of the national security adviser.
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