KuCoin, a major cryptocurrency exchange, has decided to suspend all peer-to-peer (P2P) trading in Nigerian naira due to increased regulatory scrutiny. This move comes after the Securities and Exchange Commission (SEC) of Nigeria met with industry players and urged them to cease P2P trading activities. In a blog post on Wednesday, KuCoin announced the temporary suspension of P2P naira services and Fast Buy service via Naira card, stating that it is part of their ongoing efforts to improve their services. The decision to halt P2P trading is likely an attempt to avoid legal issues with the Nigerian government, following the recent charges faced by another major exchange, Binance.
The Nigerian government, particularly the office of the Security Adviser, has intensified its scrutiny of P2P cryptocurrency trading. Fintechs and banks have been instructed to close bank accounts associated with trading and report them to the authorities. The Economic and Financial Crimes Commission (EFCC) has also taken action by blocking thousands of accounts involved in crypto trading. Emomotimi Agama, the Director-General of the SEC, blamed P2P crypto traders for the depreciation of the naira during a meeting on May 7. He expressed concerns about the impact of P2P crypto trading on the exchange rate of the naira. However, despite these measures, the naira continues to face challenges, as its value against the US dollar fell by 3.4% on Monday.
In a recent blog post, Binance CEO Richard Teng accused a Nigerian government official of pressuring crypto representatives to accept a secret agreement to settle Nigeria’s claims against the exchange. Teng claimed that the “settlement” was actually a $150 million bribe from someone in the Nigerian government. However, Nigeria denied these allegations and stated that they are a distraction from Binance’s actions. Binance had to discontinue all services involving the Nigerian naira after facing regulatory scrutiny. The Nigerian government imposed a $10 billion fine on Binance as part of a crackdown on the platform. Binance has faced regulatory scrutiny globally, with charges filed against them by the Commodity Futures Trading Commission (CFTC) in the US for alleged illegal operations and evasion of federal laws. The US Securities and Exchange Commission also charged Binance Holdings LTD and CZ for alleged unregistered exchanges and the sale of securities without proper registration.