Binance has introduced extra features for Nigerian cryptocurrency traders in the wake of a ban imposed by its Central Bank.
Nigeria is the second-largest peer-to-peer (P2P) cryptocurrency market in the world. The country suffered a huge blow on Feb. 5 when its apex bank released a circular issuing a ban on cryptocurrency trading.
The Central Bank of Nigeria (CBN) warned Direct Money Banks, Non-Bank Financial Institutions, and Other Financial Institutions against facilitating bitcoin (BTC) transactions. It also warned that defaulters would be sanctioned.
Binance CEO Changpeng Zhao (CZ) took to Twitter to announce the halt of Nigerian naira (NGN) deposits and advised users to withdraw their money.
The ban sparked an outrage amongst the Nigerian cryptocurrency community as many Fintech companies immediately halted trading in compliance with the new policy.
Binance Rolls Out New P2P Trading Feature for the Nigerian Market
Despite the initial retraction, Binance is not giving up on the industry’s lucrative peer-to-peer market. On Feb 11, it announced a new feature called “Express Mode” for Nigerian traders who want to exchange in a fully compliant manner.
The exchange has added the NGN FIAT/NGN pair to its P2P trading platform. Users can now deposit NGN to their Binance account via bank transfers or other available methods at no transaction cost.
Traders can buy and sell cryptocurrencies using NGN with the best rates available on Express Mode. Their orders will be matched with other P2P traders using the available market liquidity. However, users must still pass the compulsory know your customer (KYC) checks.
The Likely Aftermath
Nigeria’s Central Bank is unrelenting in its bid to fight off crypto-related services. Critics have scolded the CBN for attempting to prevent the growth of a promising industry in its nascent stage. It nevertheless issued a further statement justifying its decision.
The standoff continues, and it’s unclear when or even if cryptocurrency enthusiasts will get another chance to legally embrace this new digital revolution.
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