Binance Removes Nigerian Naira from P2P Service Amid Devaluation Concerns
Cryptocurrency trading platform Binance has made the decision to remove the Nigerian currency, the naira, from its peer-to-peer (P2P) service, prompting discontent and concern among Binance users in Nigeria.
This development coincides with reports that two Binance executives have been detained in Nigeria, with their passports confiscated. The executives had traveled to Nigeria to address the country’s ban on crypto exchange websites.
Binance has officially delisted NGN from the P2P market. pic.twitter.com/t13ko4ouXQ
— Ade₿ayo (@juwon_adebayo) February 28, 2024
The removal of the naira from Binance’s P2P market follows claims by Nigerian authorities that the platform contributed to the devaluation of the naira. Presidential adviser Bayo Onanuga expressed concern that Binance’s operations could harm the Nigerian economy due to its purported role in fixing foreign exchange rates.
In response, Binance and other crypto exchanges have highlighted that exchange rates on peer-to-peer markets are determined by individuals participating in trades and are not controlled by the exchanges themselves. These rates fluctuate based on market conditions and typically exceed interbank rates.
The P2P feature, which enables direct trading between buyers and sellers without intermediaries, gained popularity in Nigeria in 2021 following the government’s ban on the country’s crypto industry during former President Muhammadu Buhari’s administration.
Nigeria boasts the highest peer-to-peer volume globally, driven by extensive adoption within the country. However, regulatory concerns surrounding Binance’s role in Nigeria’s foreign exchange challenges have escalated.
The Nigerian government’s attention has shifted towards platforms offering cryptocurrency
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