Binance Issues Warning to Nigerian Users After FG Threatened to Block Platform Over FX Manipulations

• Cryptocurrency exchange platform Binance said it will block users who tend to be manipulative
• It emphasised its commitment to continued strict security protocol regardless of users' services on the app
• This occurred after the Nigerian government considered blocking the online platform and other cryptocurrency companies

Legit.ng journalist Zainab Iwayemi has over three years of experience covering the Economy, Technology, and Capital Market.

Cryptocurrency exchange, Binance, has stated that users behaving in a manipulative way would be removed from the platform.

In a statement on its platform, the company emphasised its commitment to P2P users in Nigeria.

It stated:

“We are dedicated to providing a market-driven, fraud-free, and manipulation-free platform for users. We take our responsibility to protect users very seriously. To be clear: if users are behaving in a malicious or manipulative way, they will be removed from the platform.

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"We are always investing in improving our processes and tools, which includes setting an upper limit for ads, filtering and removing bad ads, requiring and raising deposits for merchants posting ads as well as processes for actioning against any market manipulators.”

The company also said it is working hand in hand with local authorities, lawmakers, and regulators to ensure it acts on non-compliance.

The platform stressed its shared goal of protecting users while promoting innovations.

It also reassured users of its continued strict security protocol regardless of the products or services used on the Binance app.

Earlier, Legit.ng reported that the Nigerian government contemplated blocking the online platforms of Binance and other cryptocurrency companies to prevent alleged manipulation of the foreign exchange market and illicit financial transfers.

This came as the naira reached an all-time low of N1,815 to a dollar on the black market due to the recent unprecedented depreciation of the Nigerian currency.

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Nigeria mulls blocking Binance over alleged manipulation of Forex rate

On Tuesday, traders in the black market told legit.ng that they sold the naira for N1,830 per dollar.

ABCON blames Binance for naira crash

Legit.ng also reported that the Nigerian currency, the naira, performed poorly at the Peer-2-Peer (P2P) window and in the black foreign exchange markets.

According to data obtained by Legit.ng, the naira on the P2P platform, mainly utilised by cryptocurrency traders, was exchanged at a rate of N903 to a dollar on Tuesday, August 8, 2023.

This signified a loss in value of N6 or 0.66%, compared to Monday's exchange rate of N897 to a dollar.

Source: Legit.ng