The world's largest cryptocurrency trading platform, Binance, has confirmed its collaboration with President Bola Tinubu's administration to block Nigerians from engaging in dollar-naira trade on its platform.
In an announcement regarding its commitment to P2P users in Nigeria, Binance warned that users behaving manipulatively would be removed from the platform.
As industry leaders, Binance stated that they are working closely with local authorities, lawmakers, and regulators to ensure compliance.
The crypto exchange platform is implementing measures such as setting upper limits for ads, filtering and removing bad ads, requiring and increasing deposits for merchants posting ads, and taking action against market manipulators.
To further restrict trading, Binance disabled the sell option for Nigerian users, preventing them from selling fiat currency, USDT, on the platform.
The buy option was also capped at $1802 for Nigerian users, and the purchase of cryptocurrencies via P2P was disabled, leaving those who wanted to sell their crypto assets stuck.
This move by the Tinubu-led government is seen as a desperate attempt to control the freefall of the naira against the dollar.
Despite the Economic Financial Crimes Commission raiding currency speculators, the naira continues to decline.
The National Security Adviser, Nuhu Ribadu, has directed law enforcement agencies to take firm measures against anyone engaged in foreign exchange market speculation.
Criticism has arisen from Nigerian Binance users who are threatening to migrate to other platforms for their dollar-naira trading.
Some users find Binance's decision against Nigerian users "absolutely ridiculous" and believe that people will find new ways to continue trading.
Nigeria ranks among the countries with the largest population of crypto traders in the world, with more than half of its adult population trading cryptocurrency monthly, according to Binance.
Recent restrictions on domiciliary accounts in Nigeria may have also increased the number of Nigerians using Binance to save money or receive funds from abroad.
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