The recent announcement by the Nigerian government to delist the national currency, the Naira, from all peer-to-peer (P2P) trading platforms has sparked controversy and concern within the country’s blockchain community. The Director General of the Nigerian Securities and Exchange Commission (SEC), Emomotimi Agama, made this revelation during a virtual meeting with stakeholders in the industry. This decision is part of a broader effort to address the manipulation of the local currency in the foreign exchange market.
Nigeria, being Africa’s most populous country, has seen a surge in crypto adoption driven by its young population. Despite recent regulatory challenges, Chainalysis ranks Nigeria as the second-highest country in terms of global crypto adoption. However, stakeholders in Nigeria attribute the rise of P2P crypto trading to the lack of adequate regulation in the country.
The Nigerian government’s recent actions signal a significant regulatory shift from its previous stance towards cryptocurrency. The administration, under President Bola Tinubu, initially adopted a more lenient approach towards crypto. However, the current government has taken a harsher stance, blaming crypto speculators for exacerbating volatility in the foreign exchange market.
In recent months, the Nigerian government has implemented several measures to restrict access to crypto exchange platforms. Telecommunication providers have been instructed to block local crypto users from accessing platforms like Binance and OctaFX. Additionally, the government has accused crypto exchange Binance of facilitating significant trades that have put pressure on the Naira. Furthermore, four fintech companies have been instructed to halt the onboarding of new customers to improve Know Your Customer (KYC) compliance.
The decision of the Nigerian government to delist the Naira from P2P trading platforms has far-reaching consequences for the country’s crypto community. While the intention may be to curb currency manipulation, the abrupt regulatory changes have raised concerns about the future of crypto trading in Nigeria. It remains to be seen how these developments will impact the overall crypto landscape in the country and whether stakeholders can find common ground with regulators to strike a balance between innovation and compliance.
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