Nigeria Plans to Remove Naira from Crypto P2P Platforms to Prevent Manipulation
The Nigerian government, in collaboration with the country’s regulatory body, is contemplating the delisting of the naira from peer-to-peer (P2P) platforms. The decision is expected to be implemented in the near future, according to Emomotimi Agama, the Director General of Nigeria’s SEC. The new regulations will cover both cryptocurrency exchanges and custodians.
Agama revealed these plans during a meeting with the Nigerian Blockchain Industry on Monday. The move is aimed at preventing the ongoing manipulation of the naira’s value. Market participants have been engaging in activities that distort the value of the currency, prompting the regulator to seek cooperation and assistance in ensuring the integrity of the global crypto environment.
In 2021, the Central Bank of Nigeria imposed restrictions on banks and other financial institutions, prohibiting them from providing services to crypto service providers. However, in December 2023, the SEC lifted the ban and reversed the policy.
Concerns were raised in February 2024 regarding the activities of Binance, the largest crypto exchange, when it removed the naira from its P2P platform. Nigerian authorities claimed that the platform had contributed to the devaluation of the currency.
Agama expressed his concerns about manipulation and other activities that undermine the value of the naira, deeming them unacceptable. He emphasized the need for collective action in light of recent concerns regarding crypto P2P traders and their impact on the exchange rate.
This warning follows the ban on Binance, which was imposed after accusations from Central Bank Governor Olayemi Cardoso of facilitating illicit transactions. Agama called on those involved in practices that harm the national interest to cease and desist.
In an effort to combat fraud, the Central Bank of Nigeria recently directed fintech firms such as Moniepoint and OPay to restrict the opening of new accounts.