Binance Nigeria, a leading cryptocurrency exchange company, has issued a statement addressing allegations of price manipulation in foreign exchange (FX) rates on its platform.
The company emphasized that it does not function as a price discovery platform and asserted that FX rates are determined by complex market forces beyond its control.
The statement from Binance comes amidst reports suggesting that the Nigerian government is considering measures to block cryptocurrency firms from operating in the country due to concerns over activities allegedly influencing FX rates on their platforms.
In its response, Binance clarified that its platform provides a market-driven peer-to-peer (P2P) marketplace and is not intended to serve as a pricing proxy for currencies in Nigeria.
The company said: “Binance provides a P2P marketplace, not as a price discovery platform. To be clear: it is market-driven and is not intended to be a proxy for currency pricing in Nigeria.
“To protect users, and to prevent any abuse, our system automatically pauses in the event of a period of significant currency movement. Late last night, we observed a temporary suppression of prices that briefly reached our system limit. We quickly made the necessary adjustments to allow trading to continue.”
The company reassured users that their funds are secure and affirmed the operational status of its P2P product.
“Continuous market surveillance ensures the prompt removal of abnormal prices, supported by a fixed security deposit,” Binance stated.
Addressing concerns over FX rate fluctuations, Binance emphasized that foreign exchange rates are influenced by various intricate factors beyond its influence.
The cryptocurrency firm reiterated its commitment to engaging with regulators, policymakers, and relevant stakeholders to facilitate an open and transparent dialogue on managing the evolving landscape of cryptocurrency and financial markets.
“We remain dedicated to providing market-driven, fraud-free, and manipulation-free products for users. We take our responsibility to protect users and their confidential data very seriously,” Binance affirmed.
The statement concluded with an encouragement for users and the community to disregard unfounded fears or uncertainties and expressed appreciation for ongoing support as the company navigates dynamic market conditions.
Binance’s response comes in the wake of calls by the Association of Bureaux De Change Operators of Nigeria (ABCON) to halt the firm’s operations in the country, citing concerns over its impact on the naira’s stability.
