Binance, a cryptocurrency exchange, has responded to claims of price manipulation of foreign exchange (FX) rates on its website.
Binance stated on its website on Wednesday that it does not act as a price discovery platform and that FX rates are established by complicated dynamics beyond the company’s control.Binance’s response comes amid rumors that the Nigerian government intends to prohibit crypto businesses from operating in Nigeria owing to alleged manipulation of FX rates on their platforms.
The trading company stated that it offers a market-driven peer-to-peer (P2P) platform that is not intended to be a proxy for currency pricing in Nigeria.”Binance offers a peer-to-peer marketplace rather than a price discovery platform. To be clear, it is market-driven and does not serve as a proxy for Nigerian currency price,” the crypto business stated.”
To protect users and prevent misuse, our system will automatically suspend during periods of large currency volatility. Late last night, we saw a transient price suppression that briefly exceeded our system limit. We swiftly made the required changes to allow trade to resume.
Binance also stated that its users’ cash are secure, and the company’s P2P product is still working.The company told customers that severe procedures are in place to protect them in the market, such as real-time monitoring, quick removal of non-compliant adverts, and permanent removal of unscrupulous actors from the P2P platform.Continuous market supervision ensures the fast elimination of aberrant pricing, which are supported by a fixed security deposit,” Binance stated.”It is important to note that foreign exchange rates are influenced by various complex factors, which Binance has no influence on.”The company stated that there would be ongoing and active engagement with regulators, legislators, and other key stakeholders to establish an open and transparent discourse about managing the changing landscape of cryptocurrency and financial markets.
We remain committed to offering market-driven, fraud-free, and manipulation-free products to users. We take our responsibility of protecting users and their sensitive data very seriously.” Binance stated.”Again, we encourage users and the community to reject any false fears or uncertainties, and we appreciate their continued support as we manage the volatile market conditions. We will continue to give information via our proper channels as needed.
On August 8, 2023, the Association of Bureaux De Change Operators of Nigeria (ABCON) stated that Binance should be prohibited from functioning in the country. The group says the firm was one of several factors putting pressure on the naira.
Also, on February 21, 2024, Bayo Onanuga, President Bola Tinubu’s special assistant on information and strategy, stated that Binance and other cryptocurrency platforms should be barred from functioning in Nigeria.