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Has Central Bank of Nigeria Declared War on Binance P2P Trading?

2 mins
Updated by Geraint Price
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In Brief

  • Speculation arises that the Central Bank of Nigeria is cracking down on Binance's P2P, impacting the popularity of the transaction method.
  • USDT has fallen by over 30% against the Nigerian naira (NGN) on Binance, which is possibly due to CBN clearing forex backlog with three banks.
  • Association of Bureaux de Change Operators of Nigeria (ABCON) previously asked for a Binance ban, citing pressure on the Naira.
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Changpeng Zhao, the co-founder of cryptocurrency exchange Binance, posting a cryptic comment on X (Twitter) has led the community to speculate that the Central Bank of Nigeria (CBN) is cracking down on Binance peer-to-peer (P2P) exchange rates.

The citizens of developing countries often resort to crypto services for ease of transactions. Many believe that this is one of the reasons for the popularity of cryptocurrency in Nigeria.

USDT Falls 30% Against Nigerian Naira (NGN) on Binance

The screenshot below from Binance shows that USDT has fallen by over 30% against the Nigerian currency, the naira (NGN). 

Read more: 8 Best Crypto Wallets to Store Tether (USDT)

USDT/NGN trading pair
USDT/NGN trading pair. Source: Binance

Many believe that Naira is getting stronger as the CBN has been clearing its forex backlog.

According to Punch, the CBN has cleared its debts with three banks – Citibank, Stanbic IBTC, and Standard Chartered Bank. The Finance Ministry estimates that the amount of overdue forward payments is $6.7 billion.

Nonetheless, as the USDT is bleeding against the naira, some community members believe that CBN is trading on Binance P2P to force the rate of USDT down further.

Read more: 10 Best P2P Crypto Exchanges You Need To Know About in 2023

An X (Twitter) user wrote:

“Looks like a joke, but if CBN is really selling USDT on Binance P2P to trigger a price dump, then we are in more trouble than we imagined.

“This is what the Apex bank is doing? REALLY??”

In August, the Nigerian regulatory body the Association of Bureaux de Change Operators of Nigeria (ABCON), asked the government to ban Binance, claiming it puts pressure on the naira. ABCON President Aminu Gwadabe said:

“If you know about Binance, you will know that Binance trading is becoming the anchorage of both the investors and exporters window and the parallel market, which is unfortunate. So, we have to do something that can stop Binance.”

Meanwhile, Changpeng Zhao posted a Nigeria flag emoji on X.

Binance Nigeria, CBN, Naira
Changpeng Zhao posts a Nigerian flag emoji on X (Twitter)

Do you have anything to say about Binance Nigeria, Naira, or anything else? Write to us or join the discussion on our Telegram channel. You can also catch us on TikTok, Facebook, or X (Twitter).

For BeInCrypto’s latest Bitcoin (BTC) analysis, click here.

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Harsh Notariya
Harsh Notariya is a journalist at BeInCrypto, who writes about various topics, including decentralized physical infrastructure networks (DePIN), tokenization, crypto airdrops, decentralized finance (DeFi), meme coins, and altcoins. Before joining BeInCrypto, he was a community consultant at Totality Corp, specializing in the metaverse and non-fungible tokens (NFTs). Additionally, Harsh was a blockchain content writer and researcher at Financial Funda, where he created educational reports on...
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