Nigeria Is Now After P2P Crypto Exchanges
The African nation is seeking to implement new regulations to ban peer-to-peer cryptocurrency exchanges
May 7, 2024 03:00 PM
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TL;DR The Nigerian government is set to introduce stringent regulations prohibiting using the national currency, the naira, in peer-to-peer crypto exchanges. This move aims to protect the local currency from potential manipulation amid growing concerns over its impact on the naira’s exchange rate.
In a bold move to regulate the cryptocurrency landscape, Nigeria's Securities and Exchange Commission (SEC) is gearing up to enforce new regulations that will effectively ban the use of the Nigerian naira (NGN) in peer-to-peer (P2P) cryptocurrency exchanges.
This development is part of a broader initiative to safeguard the naira from potential manipulation and maintain economic stability within the country.
Regulatory Framework on the Horizon
According to Bloomberg's report on May 7, the SEC is finalizing a comprehensive regulatory framework targeting crypto exchanges, custodians, and other related firms.
This framework, expected to be unveiled "in the coming days," signifies a significant shift in Nigeria's stance towards the cryptocurrency market.
SEC Director General Emomotimi Agama highlighted the critical need for these regulations, stating, "Recent concerns regarding crypto P2P traders and their perceived impact on the exchange rate of the naira has underscored the need for collective action."
The Crackdown on Binance
The forthcoming regulations follow stringent actions against cryptocurrency exchanges, notably the global giant Binance.
Earlier in February 2024, the Nigerian government issued a local ban on Binance and arrested its executives, Tigran Gambaryan and Nadeem Anjarwalla.
The arrests have stirred significant controversy and debate within the crypto community. Gambaryan, currently detained at the Kuje correctional center in Abuja, faces serious charges, including tax evasion, currency speculation, and money laundering, set to be addressed in his upcoming trial this month.
Implications for the Cryptocurrency Market
These regulatory measures mark a pivotal moment for the cryptocurrency market in Nigeria, potentially setting a precedent for other nations grappling with similar issues.
The ban on using the Naira in P2P exchanges could significantly impact the operational dynamics of cryptocurrency transactions within the country, affecting both local and international crypto traders.
This is a developing story; updates will be provided as more information becomes available
