Binance Implements Price Cap for USDT on Nigerian P2P Platform to Comply with Local Regulations
Binance has introduced a price cap for Tether ( USDT) tokens on its peer-to-peer (P2P) platform in Nigeria in order to comply with local regulatory requirements.
Traders on Binance’s P2P platform are currently restricted from selling USDT above the set cap of 1,802 naira per USDT.
In a Tuesday blog post , the world’s largest crypto exchange said they are working closely with Nigerian authorities, which prompted the decision to implement the price cap.
“As industry leaders, we are working hand in hand with local authorities, lawmakers, and regulators to ensure we act on non-compliance,” the exchange wrote.
Binance’s P2P platform enables users to directly buy and sell cryptocurrencies for fiat currency with other users, providing a convenient trading avenue.
As a result of the price cap, accounts belonging to traders attempting to sell USDT above the imposed limit were blocked.
Consequently, some traders have sought alternative exchanges to freely trade USDT without such restrictions.
We will go to other exchange and trade
— Chival Enterprise (@ChivalEnterpri1) February 21, 2024
The move by Binance aligns with the joint efforts of Nigeria’s Office of the National Security Adviser and the Central Bank of Nigeria (CBN) to combat forex speculation and address issues affecting the country’s economic stability.
These efforts have been initiated in response to the significant role played by speculators, both domestic and international, in the depreciation of the Nigerian naira.
The devaluation of the currency has exacerbated inflation and led to economic instability within the country.
It is worth noting that the Nigerian Securities and Exchange Commission (SEC) issued a warning to local investors in July 2023
