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Nigeria Plans to Delist Naira from P2P Platforms
The Nigerian government has announced its decision to remove the national currency, the Naira, from all peer-to-peer (P2P) trading platforms. This move was disclosed by Emomotimi Agama, the Director General of the Nigerian Securities and Exchange Commission (SEC), during a virtual meeting with the country’s blockchain stakeholders. The aim is to address concerns of currency manipulation in the foreign exchange market.
Crypto Trading Environment in Nigeria
Nigeria, being Africa’s most populous nation, has witnessed a surge in crypto adoption driven by its youthful population. Despite recent regulatory challenges, the country has been ranked second on Chainalysis’ global crypto adoption index. This regulatory shift comes after a more favorable approach towards crypto during the early days of President Bola Tinubu’s administration.
Recent government actions have included the blocking of access to crypto exchanges like Binance and OctaFX through telecommunication providers. Authorities have also pointed fingers at Binance for facilitating significant trade volumes, putting pressure on the Naira. Financial institutions have been instructed to halt accounts engaged in crypto activities and report them to law enforcement. Moreover, four fintech companies have been directed to cease onboarding new customers to improve Know Your Customer (KYC) compliance.
In response to these developments, financial journalist Olumide Adesina expressed concerns about the potential extinction of the crypto industry in Nigeria. He emphasized that the government’s interests appear to outweigh public interests in digital assets and emerging technologies.
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