Binance, a prominent cryptocurrency exchange with over 170 million users globally, has disabled its peer-to-peer (P2P) feature for Nigerian users.
The P2P market allows users to transact directly without the involvement of a third party and gained popularity in Nigeria after the government restricted the country’s cryptocurrency industry in 2021.
The move comes as the Nigerian government focuses on platforms offering cryptocurrency services due to concerns about the depreciation of the naira and the informal valuation of the currency. The Central Bank of Nigeria (CBN) raised concerns about $26 billion passing through Binance Nigeria in the last year from unidentified sources.
CBN Chief Olayemi Cardoso mentioned, “In the case of Binance, $26 billion has passed through Binance Nigeria in the last year alone from sources and users who we cannot adequately identify.” The CBN has called for collaboration with the Office of the National Security Adviser (NSA), the Securities and Exchange Commission (SEC), the Police, and the Economic and Financial Crimes Commission (EFCC) to combat illegal financial activities.
In response to the government’s actions, Binance’s website, along with other cryptocurrency companies, has been disabled. Additionally, two senior Binance officials were detained in Nigeria as part of the government’s crackdown on cryptocurrency exchanges to address concerns about naira speculation and illegal money transfers. The CEOs were apprehended upon arriving in Nigeria, and their passports were confiscated.
