Crypto platforms suspend USDT, USDC purchases after CBN’s scrutiny

A handful of crypto companies in Nigeria, including Binance, one of the world’s biggest exchanges, will no longer allow users to buy the USDT and USDC stablecoins with naira after a renewed scrutiny from the Central Bank of Nigeria (CBN).

“There was a meeting of crypto founders on Tuesday, and a number of them agreed to suspend the trades on their platform,” someone at the meeting disclosed.

A second crypto industry player confirmed the meeting but declined to share details.

At least two crypto exchanges have told their Nigerian customers about the new development.

“We are suspending the buying and selling of USDT and USDC for Naira. This means you can’t buy or sell USDT or USDC with Naira,” said a notification sent by one exchange to customers.

Binance and other exchanges have found themselves in regulatory crosshairs, as regulators believe that crypto platforms encourage speculators to manipulate exchange rates. This week, users could not access the websites of crypto exchanges like Coinbase, Quidax and Binance.

Increased volatility in Nigeria’s FX markets has triggered several policy actions, and on Tuesday afternoon, the CBN governor, Olayemi Cardoso, stated that “$26 billion has passed through Binance Nigeria from sources and users we cannot identify.”

Unconfirmed reports claimed two executives at a crypto company were arrested on Tuesday in a move to force the company to share its KYC data.

Special Adviser to the National Security Adviser (NSA), Zakari Mijinyawa, said he was unaware of any arrest.

Crypto exchanges are treading cautiously, three people who work in the industry told TechCabal.

ALSO, no fewer than two Binance employees were reportedly detained on Monday night by the Department of State Services (DSS) in Abuja in connection with investigations into crypto platforms’ operations in the country.

Authorities have confiscated the passports of two Binance executives, an American and a British citizen, according to persons familiar with the probe.

Officials did not provide details on why the Binance employees are being detained, and it remains unclear on whether they have been charged with any violation of Nigerian law.

The Executive Secretary of Stakeholders in Blockchain Technology Association of Nigeria, Rume Ophi, said he learned about the secret police’s ‘raid’ from his contacts at the company.