Why Binance Removed Nigerian Naira from its P2P Platform: An Insightful Analysis

Binance’s Removal of Nigerian Naira from P2P Platform

Binance, recognized as the world’s largest cryptocurrency exchange, recently made a noteworthy decision to exclude the Nigerian Naira from its peer-to-peer (P2P) platform.

This move has attracted significant attention, as it sheds light on the ongoing dynamics between Binance and the Nigerian government, particularly regarding the government’s claim for $10 billion in compensation.

The P2P platform, enabling individuals to trade, sell, or buy digital assets without third-party involvement, gained popularity among Nigerians in 2021.

Binance Vs. Nigeria: The Full Story

An aide to President Bola Tinubu revealed that Nigeria plans to demand $10 billion in compensation from Binance for alleged damages caused by its operations.

Bayo Onanuga, the president’s adviser on information and strategy, stated, “This country suffered huge losses from their operations, and the government is asking for a small amount from them.”

Onanuga accused traders of using the crypto exchange to manipulate Nigeria’s currency, undermining the central bank’s authority to fix exchange rates.

• The government’s demand for compensation is a response to the reported damages.
• Two members of the Binance team were reportedly detained in Nigeria.
• Law enforcement agencies and the central bank are investigating Binance’s operations in the country.

Despite these allegations, Binance has not yet responded to requests for comments from Semafor Africa.

Stepping Back

This isn’t the first time a Nigerian administration has sought a substantial amount from a foreign company for alleged breaches. Previously, Nigeria imposed a $5.2 billion fine on the South African telecoms company MTN, which was later negotiated down to $980 million.

Nigeria is currently facing economic challenges, with low growth and a declining value of the nation’s currency.

Binance Crypto Exchange Overview

Binance, established in 2017 by Changpeng Zhao, stands out as one of the largest cryptocurrency exchanges globally, boasting a significant daily trading volume of digital assets.

The exchange supports a diverse range of digital assets, including Bitcoin (BTC), Ether (ETH), Dogecoin (DOGE), and more. Binance offers crypto-to-crypto trading services, crypto wallets, and various programs for miners and traders to make informed investment decisions.

The platform’s native blockchain-based token, BNB, currently stands at $410.46, reflecting a 0.67% increase in one day. With a market cap of $61,367,510,450 and $1,566,292,559 in 24-hour volume, BNB has a total supply of 149,542,013 BNB tokens.