Due to regulatory problems Nigerians can no longer trade their USDT to their local fiat currencies
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Nigerians can no longer convert their crypto to their local currencies anymore. This is due to the government’s clampdown on crypto exchanges in a bid to stabilize the naira.
According to the Financial Times, two Binance executives have been detained in Nigeria, and their passports have been confiscated.
Read Also: Binance Denies Manipulating Nigerian Naira Despite ‘Glitch’ Impacting P2P Traders
This allegedly led to suspension of the trading pair on not just Binance but on other exchanges including Bitmama, Busha, Luno, Patricia, Quidax, Roqqu and a few others.
However exchanges like Bybit and Kucoin continue to support the pair. It is worth mentioning that the Nigerian government has not outrightly banned the trading pair or the trading of cryptocurrencies entirely.
Concerns over P2P Exchange Rates
Recently, the Nigerian government imposed restrictions on access to the online platforms of various crypto firms, including Binance. Regulators argued that this measure aimed to curb what they perceived as ongoing manipulation of the foreign exchange market and unlawful fund movements.
However, it’s common knowledge within the crypto industry that exchange rates on P2P markets are not controlled by crypto exchanges. Instead, these rates represent the agreed-upon prices between individuals trading their assets.
The “open-market exchange rate,” commonly referred to as the rate in P2P markets, is determined by individuals participating in transactions involving volatile fiat currencies. Such rates often experience significant fluctuations based on market conditions and typically exceed the interbank rate.
This marks the first instance where a government has attributed open-market currency rates to crypto exchanges.
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Tony Chimdiuto