Nigerian Authorities to Ban Peer-to-Peer Cryptocurrency Trading with Naira
Nigerian authorities are set to introduce a ban on peer-to-peer cryptocurrency trading using the local currency, the naira. The Securities and Exchange Commission of Nigeria (SEC) accuses cryptocurrency exchanges of manipulating the naira exchange rate through such transactions. The new initiative proposed by SEC chairman Emomotimi Agama involves excluding the naira from all peer-to-peer platforms in the country.
Impact on Nigerian Crypto Investors
This move will significantly limit the opportunities for Nigerian crypto investors who have been actively using peer-to-peer platforms to exchange cryptocurrency for the national currency. However, authorities are confident that such a ban will help combat the depreciation of the naira, which in 2024 ranked as the top weakest currency against the US dollar.
Impact on Cryptocurrency Exchanges
The strict measures already taken by Nigeria against cryptocurrency platforms are impacting major exchanges. For example, Binance, one of the leading cryptocurrency exchanges, was forced to halt operations with the naira in March in response to pressure from Nigerian regulators. Shortly after, another major platform, OKX, also decided to exclude the naira from its peer-to-peer platform on May 3. While the company did not directly mention pressure from authorities, its statement about «changes in local market requirements» indicates the need to adapt to stricter regulations in Nigeria.
These changes could have a serious impact on the cryptocurrency market in Nigeria and will require investors and traders to seek new ways to work with cryptocurrencies.
