- Nigeria’s economic difficulties drove the decision to ban P2P crypto trading to stabilize the currency.
- The SEC plans tighter regulations for crypto exchanges, signaling increased oversight.
Nigeria has intensified its crackdown on cryptocurrency trading in the country’s currency, the naira, to combat what it perceives as detrimental effects on the struggling local economy. The Securities and Exchange Commission (SEC) has announced plans to implement new regulations targeting crypto exchanges and other sectors of the industry.
The Federal Government raised a green flag to remove the naira from all peer-to-peer (P2P) cryptocurrency platforms in Nigeria. P2P platforms enable direct trading between users without intermediaries, allowing for price negotiation between traders.
This decision follows recent efforts by the government to regulate Nigeria’s cryptocurrency market, citing concerns about manipulation affecting the exchange rate.
Nigeria has witnessed a surge in cryptocurrency adoption as residents seek refuge from the depreciation of the naira, which has lost significant value against the dollar in recent months. Central Bank Governor Olayemi Cardoso has accused Binance of facilitating illicit transactions in the naira, leading to the platform’s restriction by authorities.
However, the newly appointed Director-General of the Commission, Emomotimi Agama, reiterated the SEC’s commitment to safeguarding national interests and warned against activities deemed detrimental to the economy.
