Major cryptocurrency exchange Binance has launched a P2P market for Nigerian crypto traders. In the wake of the Central Bank of Nigeria (CBN) banning commercial financial institutions from providing services to crypto exchanges and digital asset companies.
The crypto platform, which was already offering direct fiat deposits and trading pairs, had to halt the service in the wake of the banking ban. However, Binance CEO ChangPeng Zhao promised the exchange would launch a P2P market soon.
The banking ban imposed by the Nigerian Central Bank created a lot of outrage and fear among crypto traders in the country. Binance’s support could help ease some of those concerns.
As part of the ban, the CBN has ordered all commercial banks in the country to close accounts belonging to crypto exchanges. As well as other businesses transacting in digital currencies. A failure to comply with this directive will result in severe sanctions.
Natives of the country have not taken the latest developments lightly. A Rights Group Lawyer has filed a case against the country’s SEC and central bank claiming the banking ban is illegal.
Prior to the ban, Nigeria began to show great signs of crypto adoption. The government’s recent decision to limit U.S. Dollar holding by citizens sparked a surge in Bitcoin trading volume as it reached record highs in the country.
While the current rule does not prohibit crypto trading in the country. It blocks ways for traders to liquidate their funds.
P2P Market Has Seen Significant Growth
The P2P market has registered significant growth in countries where governments have clamped down on crypto use. In a P2P market, a trader does not have to depend on a bank to liquidate their funds. As they can directly exchange their digital against any currency.
Zhao asked Nigerian crypto traders to withdraw their funds. Also advising others to convert their Fiat holding to Binance Coin if they wish to continue trading.
The demand for BNB in the Nigerian markets and the rising popularity of Binance Smart Chain has sent BNB price to a new all-time high of $148.