Binance, a tier one cryptocurrency exchange, has abruptly closed its peer-to-peer (P2P) trading platform in Nigeria, citing regulatory concerns arising from forex volatility.
inance, a tier one cryptocurrency exchange, has abruptly closed its peer-to-peer (P2P) trading platform in Nigeria, citing regulatory concerns arising from forex volatility.
Reports suggest that two Binance Nigeria executives were arrested today by the Nigerian Federal Government (FG) during a meeting at the Office of the National Security Adviser (ONSA) in Abuja, the nation’s capital. Their passports were reportedly confiscated, sources have revealed this to News Central.
The closure of the P2P trading platform, where users could directly buy and sell cryptocurrencies using local currency, has left many Nigerian cryptocurrency traders uncertain about their next steps. Binance was favoured among Nigerians for its user-friendly platform and wide range of supported digital currencies.
Sources indicate that the staff arrests are linked to investigations into money laundering and illegal foreign exchange trading. The Nigerian government has been tightening its grip on cryptocurrency activities, citing concerns about forex manipulation affecting the stability of the local currency Naira and the potential for illicit transactions.
CBN Governor Olayemi Cardoso expressed suspicion towards crypto exchanges in Nigeria, stating concerns about alleged illicit flows. He disclosed to the local press on Feb. 27 that, “In the case of Binance, in the last one year alone, $26bn has passed through Nigeria from sources and users who we cannot adequately identify.” He added, “There’s a lot that is going on now as a result of collaboration between the different agencies, which includes EFCC (Economic and Financial Crimes Commission), the police, and of course, the office of the NSA (National Security Adviser).”
Recall that the internet access to Binance and other exchanges in Nigeria was blocked on Feb. 21, following the Central Bank of Nigeria’s accusation of crypto exchanges manipulating the country’s currency. Binance had implemented trading restrictions in Nigeria on Feb. 20 to comply with regulators.
Reports show that the Nigerian Communications Commission (NCC) blocked the websites of the following exchanges and platforms like Binance, Forextime, OctaFX, Crypto, FXTM, Coinbase, Kraken, and other crypto exchanges from operating within its radio waves on Feb. 22.
Nigerian cryptocurrency traders are expressing their concerns on social media, urging transparency from Binance and the government, while others are contemplating alternative platforms for trading.