In early 2024, Nigeria made headlines in the global crypto community by blocking Binance’s P2P (peer-to-peer) trading services using the local currency, naira. As the most widely used crypto platform in the country, Binance’s restriction created shockwaves, raising questions and concerns among millions of users.
This article summarizes the key reasons behind the ban, how it unfolded, its effects on users — and what safer options are available now.
Key Reasons Behind the Ban
1. Concerns Over Exchange Rate Manipulation and Untraceable Capital Flows
The Central Bank of Nigeria (CBN) reported that over $26 billion USD flowed through Binance Nigeria in 2023, often from users and sources that could not be clearly verified.
CBN and the National Security Agency (NSA) alleged that Binance’s P2P market was being used to manipulate the exchange rate of the naira, undermining the country’s financial stability. The unofficial rates set on Binance were believed to influence black market rates, weakening the central bank’s ability to control currency value.
Note: P2P trading in Nigeria had also become a hotspot for scams and fraud — including fake payment proofs, chargeback fraud, identity theft, and off-platform deals with no user protection. This rampant abuse added pressure for regulatory intervention.
2. Allegations of Money Laundering and Terrorist Financing
The NSA expressed serious concern that P2P platforms, especially those lacking robust KYC and AML protocols, were being used for illicit financial activity, including money laundering and terror financing. The lack of transparency in user identity and transaction flows made it nearly impossible for regulators to track or prevent criminal use.
Timeline of Key Events
February 2024
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Feb 20: Binance suspended all P2P naira trading on its platform.
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Feb 21: Nigerian telecom providers were instructed to block access to Binance, Coinbase, and Kraken.
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Feb 28: Two Binance executives — Tigran Gambaryan and Nadeem Anjarwalla — were detained in Nigeria over charges related to money laundering and tax evasion.
March 2024
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Mar 1: Binance officially delisted naira from its P2P platform.
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Mar 13: The Nigerian government demanded full data on the top 100 Binance users in Nigeria, including six months of transaction history.
May 2024
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May 7: Nigeria’s Securities and Exchange Commission (SEC) announced it would introduce new regulations to ban all P2P naira trading in a bid to protect the national currency.
Impact on Nigerian Users
Loss of Access
Nigerian users could no longer use Binance to trade crypto via naira, disrupting the most common method of crypto-to-fiat conversion in the country.
Migration to Riskier Channels
Many users turned to alternative platforms like Bybit or KuCoin, or resorted to informal channels such as Telegram and WhatsApp — where scams, fake receipts, and identity fraud are rampant and protection is minimal.
Legal and Financial Risks
Unregulated P2P trades now carry higher risk. Users may face frozen bank accounts or investigations if they receive funds from suspicious or flagged accounts, even unknowingly.
Azasend: A Safer Alternative After Binance’s P2P Shutdown
For users still looking to buy or sell crypto securely, Azasend offers a modern solution that removes many of the risks associated with traditional P2P:
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No scams, no chargebacks: Transactions are verified automatically — no need to wait for manual confirmation from the counterparty.
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No frozen bank accounts: Funds are routed through clean, verified sources, reducing the chance of account suspension.
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No complex KYC needed: Start trading in minutes without submitting excessive personal data.
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Not impacted by the P2P ban: Azasend operates under a legal, compliant model using automated conversion — not traditional P2P networks.
Final Thoughts
The Binance P2P ban marked a turning point in Nigeria’s crypto landscape. While it cut off access to a major trading method, it also highlighted the need for safer, smarter alternatives.
Platforms like Azasend are leading the way by combining convenience, automation, and security — allowing users to trade without fear of scams, frozen accounts, or legal complications.
Don’t just adapt. Trade smarter. Switch to Azasend and protect your crypto journey.
How to Buy / Sell / Convert Crypto with Azasend
Sign Up
Sign up or log in to your account on the Azasend website/app.
Buy / Sell / Convert
Choose your crypto and fiat pair, enter the amount, and confirm the transaction.
Choose a Payment Method
- Bank Transfer: Send or receive fiat directly through your bank account. (Upload receipt for purchases / Confirm receipt for sales.)
- Azasend Wallet: Enjoy ultra-fast transactions using your Azasend Wallet — just tap to confirm, no receipt needed. Your funds stay securely in your wallet, ready for quick reinvestment whenever you need.
Frequently Asked Questions (FAQ)
1. Why was Binance P2P banned in Nigeria?
Because of concerns about exchange rate manipulation, money laundering, and lack of user identity verification.
2. Can Nigerians still trade crypto after the ban?
Yes, but not with naira on Binance. Users must switch to safer platforms like Azasend.
3. Is Azasend affected by the P2P ban?
No. Azasend uses automated NGN-crypto conversion, not a traditional P2P model.
4. Is it safe to trade crypto with Azasend?
Yes. Transactions are verified automatically and funds come from approved sources.
5. Do I need complex KYC to use Azasend?
No. Azasend allows quick and simple trading without complicated KYC steps.
