The Nigerian government has unveiled plans to remove the national currency, the Naira, from all peer-to-peer (P2P) trading platforms.
Emomotimi Agama, the Director General of Nigeria’s Securities and Exchange Commission (SEC), reportedly unveiled this plan today during a virtual meeting with the country’s blockchain stakeholders as part of a broader effort to clamp down on the manipulation of the local currency on the foreign exchange market. .
Meanwhile, local stakeholders have blamed the rise of P2P crypto trading in the country on inadequate regulations.
Nigeria is the most populous country in Africa. The young population has pushed cryptocurrency adoption to record highs despite recent regulatory setbacks, with Chainalysis ranking Nigeria second on the global crypto adoption index.
Nigeria’s crypto environment
The development marks a significant shift in regulation, following a more accommodating attitude towards crypto during the early days of President Bola Tinubu’s administration. However, in recent months there has been a reversal in the government’s position, with authorities blaming crypto speculators for exacerbating volatility in the currency market.
In recent months, the Nigerian government has engaged telecommunications providers to block local crypto users’ access to exchange platforms such as Binance and OctaFX. Authorities have also blamed crypto exchange Binance for facilitating billion-dollar transactions, increasing pressure on the Naira.
Furthermore, authorities have ordered financial institutions in the country to block accounts involved in crypto transactions and report such activities to law enforcement. Additionally, the government has ordered four fintech companies to stop acquiring new customers as part of ongoing efforts to strengthen Know Your Customer (KYC) compliance.
Olumide Adesina, a financial journalist, said these moves showed that the “crypto industry is in danger of extinction as the interest of the FG exceeds the population’s interest in digital assets and evolving technology.”
