Nigerian Crypto Traders Rush to Binance, Trade N1.9bn in 24 Hours as FG Blocks Platforms

Nigerian Crypto Traders Rush to Binance, Trade N1.9bn in 24 Hours as FG Blocks Platforms

  • The trading volume on Binance, the cryptocurrency exchange platform, rose following the directive by Nigeria to block it
  • Trade volumes increased by N1.9 billion as traders rushed to trade USDT following the naira's volatility
  • The federal government ordered the Nigerian Communications Commission (NCC) to ask telcos to block crypto platforms in the country's Pascal Oparada has reported Tech, Energy, Stocks, Investment and the Economy for over a decade

Crypto traders in Nigeria exchanged a total value of N1.9 billion via USDT-naira pair on Binance 24 hours after the government began a clampdown on the leading digital currency exchange.

USDT is a stable coin pegged to the US dollar and used as a measure of value for other global cryptos.

Trade volume rises on Binance

However, digital currency traders believe dollars back USDT; hence, its value is taken as given, with thousands of Nigerian traders exchanging it daily.

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According to The Guardian, data from Tradesanta reveals that the volatility of the naira on Binance had risen in the past three days by 6.5%.

The trading figure rose from the N1.35 billion turnover recorded 24 hours before the order by the Nigerian government.

Binance has confirmed directives on its operations in Nigeria.

The Nigerian government, via the Nigerian Communications Commission (NCC), directed telecom companies to block the platform as of Wednesday, February 21, 2024.

Analysts believe that move was meant to strengthen the naira and clampdown on Forex speculators.

Binance, USDT, Dollar supply
President Bola Tinubu's government orders NCC to block cryptocurrency platforms Credit: Novartis
Source: Getty Images

FG moves to stabilise naira, blocks Binance.

Binance disclosed on X on Thursday, February 22, 2024, that it was working with Nigerian regulators on issues of non-compliance on its platform.

The Nigerian government is moving to curb speculators' alleged Forex market manipulation.

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Binance said:

"Further, as industry leaders, we are working hand in hand with local authorities, lawmakers, and regulators to ensure we act on non-compliance."

Binance stated further that it is committed to a market-driven, fraud-free and manipulation-free platform for users.

The development led to users complaining on Binance of their inability to buy USDT, stating that users can only sell but not buy the digital currency.

Binance, 8 Other Online Platforms Nigerians Can No Longer Access reported that In its bid to halt the free fall of the naira, the federal government has decided to block Nigerian's access to several online cryptocurrency platforms.

These platforms offer a peer-to-peer (P2P) service whereby two individuals interact directly with each other to sell or buy currencies of their choice.

With the ban, Nigerians on the platform can no longer access the ability to sell and buy dollars or other crypto assets.


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