Nigeria Plans to Remove Naira from Crypto P2P Platforms in Effort to Prevent Manipulation
The Nigerian government, in collaboration with the country’s regulatory body, is considering delisting the naira from all peer-to-peer (P2P) platforms. According to Emomotimi Agama, the Director General of Nigeria’s SEC, this move will be implemented in the near future and will apply to crypto exchanges and custodians.
Agama highlighted the necessity of delisting the naira from the P2P space in order to prevent the current level of manipulation. During a meeting with the Nigerian Blockchain Industry, he revealed these plans and expressed the regulator’s desire for collaboration and assistance in ensuring the global respectability of the crypto environment.
In 2021, the Central Bank of Nigeria prohibited banks and other financial institutions from providing services to crypto service providers. However, in December 2023, the SEC reversed this ban and announced its decision to lift the policy.
Concerns regarding the activities of Binance, the largest crypto exchange, arose in February 2024 when it removed the naira from its P2P platform. Nigerian authorities claimed that the platform contributed to the devaluation of the naira.
Agama voiced his concerns over manipulation and any activities that undermine the value of the naira. He deemed such actions unacceptable and emphasized the need for collective action.
The warning comes after the nation banned Binance due to allegations of facilitating illicit transactions, as stated by Central Bank Governor Olayemi Cardoso.
To combat fraud, the Central Bank of Nigeria recently instructed fintech firms, including Moniepoint and OPay, to restrict new account openings.
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