May 23, 2024
Latest Cryptocurrency News

Nigeria’s Naira Peer-to-Peer Crypto Trading Faces Ban

Nigeria’s Securities and Exchange Commission (SEC) is gearing up to roll out a new regulatory framework aimed at crypto exchanges and custodians, with a particular focus on peer-to-peer (P2P) cryptocurrency trading involving the national currency, the Nigerian naira.

According to Bloomberg’s report on May 7, the SEC’s Director General, Emomotimi Agama, emphasized the necessity of these regulations to safeguard the naira from potential manipulation in the crypto market.

Binance Faces Regulatory Scrutiny and Executive Arrests

The announcement follows a series of events highlighting the Nigerian government’s stringent stance on cryptocurrency exchanges.

In February 2024, the global crypto exchange, Binance, was banned locally, and its executives, Tigran Gambaryan and Nadeem Anjarwalla, were arrested.

Gambaryan, currently incarcerated in Abuja’s Kuje correctional center, is set to stand trial on May 17, facing charges ranging from tax evasion to money laundering.

Challenges Ahead Despite Peer-to-Peer Ban

Despite the looming P2P ban involving the naira, challenges persist for regulatory enforcement. Although major crypto exchanges like Binance have ceased naira-based P2P services, they continue to face regulatory pressures.

Binance’s CEO, Richard Teng, criticized the Nigerian government’s actions, highlighting the broader implications for global companies.

Moreover, the planned P2P ban does not signify the demise of crypto trading in Nigeria. Industry experts suggest that Nigerians may still resort to P2P trading using alternative currencies like the U.S. dollar.

Additionally, enforcing a complete ban on P2P trading poses significant hurdles, if not impossibilities, according to some industry advocates.

While Nigeria prepares to implement these stringent regulations, the crypto community awaits further developments amidst an evolving regulatory landscape.

Photo by ismail seghosime

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