Crypto trading platform, Binance, has said that foreign exchange (forex) rates are influenced by various factors.
Binance on Thursday adjusted trading on its platform to address an unusual currency movement, even as it has distanced itself from the forex debacle in Nigeria.
Recall that there are unconfirmed reports that the Central Bank of Nigeria (CBN) and other agencies of government had allegedly ordered Binance to set a cap on Nigerian traders selling USDT.
Binance, in a report published by on its Blog on Wednesday, distanced itself from such a report, while affirming that its peer-to-peer (P2P) product remains operational but with adjustments.
“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.
“We have stringent measures in place to protect users in the market, including real-time monitoring, immediate removal of non-compliant advertisements, and permanent removal of bad actors from using our P2P product. Continuous market surveillance ensures the prompt removal of abnormal prices, supported by a fixed security deposit,” it said.
Binance stated that it is collaborating with legislators and authorities to preserve openness in cryptocurrency trading and its effects on the financial markets, while harping on the fact that foreign exchange prices are not influenced by Binance.
“It is important to note that foreign exchange rates are influenced by various complex factors, which Binance has no influence on. However, we continue to actively engage with regulators, policymakers and other relevant stakeholders to foster an open transparent dialogue about managing the evolving landscape of cryptocurrency and financial markets.
“Again, we encourage users and the community to disregard any unfounded fears or uncertainties and appreciate the ongoing support as we navigate the dynamic market conditions. We will continue to provide updates through our official channels, as necessary,” it explained.
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