Changpeng Zhao, the founder of the largest cryptocurrency exchange platform in the world, Binance, has provided options on how Nigerians can safeguard their money following a ban on cryptocurrency transactions by the Central Bank of Nigeria (CBN).
Every Day News had reported that the CBN in a statement, prohibited the use of bitcoin and other cryptocurrencies in Nigeria, directing banks and other financial institutions to identify and shutdown accounts used to trade cryptocurrency.
In the midst of the confusion which gripped many Nigerians, Zhao reacted to the CBN ban on Twitter, advising Nigerians to take the withdraw option, by pulling out their naira from Binance as early as possible to avoid system issues.
He, however, stated that Nigerians willing to continue investing in cryptocurrency can take the convert option, which enables them convert their naira on Binance to crypto without leaving the platform, “Crypto is not affected. Also looking at other P2P fiat options.”
While making the suggestions, Zhao said he “Received notice from our channel partners that NGN (naira) deposits and withdrawals will be affected. Still confirming details on when/how. Please withdraw your NGN (naira) as early as possible to avoid potential channel issues. Will share more details as they become available.”
Zhao also disclosed that the Binance platform will no longer receive naira deposit as the cryptocurrency platform has disabled deposit feature, “To err on the safe side, we have also disabled deposits to prevent more NGN (naira) coming in.”
While addressing a Nigerian user, Zhao said, “Don’t deposit NGN (naira) anymore. We don’t want any of our user funds to be stuck somewhere. Just to be safe.”
It was understood that cryptocurrency users can store or deposit cash on cryptocurrency exchange like Binance, Buycoin, Bundle Africa, Quidax, and Paxful, and later convert to Bitcoin, Dogecoin, Ethereum, Litecoin and other cryptocurrencies when users want.
Meanwhile, Zhao warned that the CBN ban ordering banks to stop working with cryptocurrency exchange will not prevent peer-to-peer transactions, leading to a boom in the P2P segment, “It is likely that the Nigeria banks will stop working with exchanges. P2P trading will likely flourish as a result.”
Nigeria is the second largest market for cryptocurrency in the world, and P2P is the most used medium of transactions on the crypto exchange platforms.
P2P means direct transactions between two individuals without the involvement of the exchange itself.