Binance, a crypto exchange, is expected to limit the selling price of Tether (USDT $1.00) tokens on its peer-to-peer (P2P) platform to ensure compliance with local authorities in Nigeria. Traders on Binance cannot currently sell USDT above a 1,802 naira per USDT capital stated Cointelegraph.
Sources revealed that Binance will work with the local authorities, lawmakers, and regulators to ensure it acts on users’ non-compliance with the price capital. It is believed that Binance P2P will allow users to buy and sell crypto for fiat currency directly with other users.
The price capital is expected to block accounts of traders attempting to sell above it, leading traders to other exchanges to trade freely without restrictions. In response to allegations of bending a knee to the FX control desires of the Nigerian government by setting a pegged rate to NGN/USDT trading, Binance said the P2P price peg was caused by an “automatic system pause”.
The exchange stated that its system automatically pauses in the event of a period of significant currency movement, and clarified that the suppression of prices is temporary as necessary adjustments have been made, allowing trading to continue.
(With insights from Cointelegraph)
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