The Nigerian government, under the oversight of the country’s securities regulator, is set to eliminate the Naira from all peer-to-peer (P2P) crypto trading platforms in a decisive move.
This action, scheduled to be implemented shortly, is aimed at curbing the manipulation of the national currency.
In 2021, the Central Bank of Nigeria imposed restrictions on financial institutions, prohibiting them from providing services to crypto-related businesses. However, in December 2023, the ban was briefly lifted by the SEC, with hopes of reintegrating crypto service providers into the banking sector.
Despite this, the regulatory environment tightened once again following allegations against Binance, the world’s largest crypto exchange, leading to the removal of the Naira from its P2P platform in February 2024.
The regulator has voiced growing concerns regarding the manipulation of the Naira’s value through crypto platforms.
In light of the ban on Binance and allegations of facilitating illicit transactions, other fintech firms such as Moniepoint and OPay were also instructed to cease new account openings to combat fraud.
The forthcoming delisting of the Naira from P2P crypto platforms signifies a significant shift in Nigeria’s cryptocurrency regulation approach.
Through these measures, the government aims to protect the integrity of its financial system and address unwarranted fluctuations in the value of its currency caused by speculative trading.