Forex Crisis: Binance Responds To Unusual Currency Fluctuations
Prominent crypto trading platform, Binance, has modified its trading procedures to counteract an abnormal currency fluctuation, while also dissociating itself from the forex crisis in Nigeria.
Recall the Federal Government had reportedly blocked the major online crypto platforms to avert the continuous manipulation of the forex market and illicit movement of funds.
Naija Latest Gist reports that the latest development comes after the National Security Adviser, Nuhu Ribadu, ordered a crackdown on currency speculators in the country.
It was gathered that the Nigerian Communications Commission (NCC) communicated the directive to telecommunication companies to block the crypto platforms.
Reports, yet to be confirmed, indicate that the Central Bank of Nigeria (CBN) and other governmental entities may have directed Binance to impose restrictions on Nigerian traders selling USDT.
Binance, in a statement released on Wednesday via Binance Blog, refuted the claims made in the report and reiterated the operational status of its peer-to-peer (P2P) product, albeit with adjustments.
Binance underscored its partnership with legislators and regulatory agencies to uphold transparency in cryptocurrency trading and its consequences on financial markets, clarifying that Binance does not influence foreign exchange rates.
The statement reads, “To protect users and to prevent any abuse, our system automatically pauses in the event of a period of significant currency movement. Late last night, we observed a temporary suppression of prices that briefly reached our system limit. We quickly made the necessary adjustments to allow trading to continue.
“We have stringent measures in place to protect users in the market, including real-time monitoring, immediate removal of non-compliant advertisements, and permanent removal of bad actors from using our P2P product. Continuous market surveillance ensures the prompt removal of abnormal prices, supported by a fixed security deposit.
“It is important to note that foreign exchange rates are influenced by various complex factors, which Binance has no influence on. However, we continue to actively engage with regulators, policymakers and other relevant stakeholders to foster an open, transparent dialogue about managing the evolving landscape of cryptocurrency and financial markets.
“Again, we encourage users and the community to disregard any unfounded fears or uncertainties and appreciate the ongoing support as we navigate the dynamic market conditions. We will continue to provide updates through our official channels as necessary.”
