Nigerian Government To Delist Naira From P2P Platforms

The Federal Government has announced plans to delist the naira from all peer-to-peer (P2P) platforms.

The Director General of the Securities and Exchange Commission (SEC), Emomotimi Agama, made this disclosure in a virtual meeting with blockchain stakeholders.

This decision aims to tackle the manipulation of the local currency’s value in the foreign exchange market.
The country’s regulatory authorities have been investigating and scrutinising cryptocurrency exchanges in recent months.

On March 8, the biggest cryptocurrency exchange, Binance, stopped its naira services.

This development comes as fintechs such as Kuda and Moniepoint have announced plans to close accounts of anyone engaging in crypto or other virtual asset transactions and share their information with relevant authorities following the Central Bank of Nigeria’s regulations.

Recall that in December 2023, the Central Bank of Nigeria (CBN) lifted the ban on banks facilitating crypto transactions and issued guidelines for banks and other financial institutions when operating with entities that provide crypto services, following its prohibition in February 2020.

Nigeria has recently moved to regulate the cryptocurrency market, claiming that this will reduce naira manipulation. In June 2023, the Securities and Exchange Commission declared Binance’s operations illegal in Nigeria.

Subsequently, the federal government demanded information about Binance’s top 100 users in the country, claiming that unknown individuals conducted approximately $26 billion in transactions through the crypto platform, contributing to the naira’s decline.

In March 2024, Binance announced that it would no longer accept naira deposits or withdrawals as it discontinued all Nigerian naira services, including naira trade on its P2P platform.

In April 2024, the Central Bank of Nigeria directed Moniepoint, OPay, Kuda Bank, and PalmPay to restrict new account openings due to its ongoing efforts to combat fraud.

Punch news/Adukwu Williams

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