KuCoin, a cryptocurrency exchange, has chosen to suspend all peer-to-peer (P2P) trading involving the Nigerian naira due to increased attention from regulatory authorities in Nigeria. This decision comes after the country’s Securities and Exchange Commission (SEC) held a meeting with industry players, urging them to cease P2P trading activities. In a blog post on Wednesday, KuCoin informed its users about the temporary suspension of P2P naira services and Fast Buy service through Naira card, explaining that it is part of their ongoing efforts to improve their services.
The exchange’s decision to halt P2P trading is likely an attempt to avoid any conflict with the Nigerian government, especially in light of the recent legal charges faced by another major exchange, Binance.
The Nigerian government, specifically 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 such accounts to the authorities. The Economic and Financial Crimes Commission (EFCC) has also taken action by blocking thousands of accounts involved in crypto trading. During a meeting on May 7, Emomotimi Agama, the Director-General of the SEC, blamed P2P crypto traders for the devaluation of the naira, expressing concerns about its impact on the exchange rate.
Despite these strict measures, the naira continues to face challenges. On Monday, the naira experienced a 3.4% decline, falling to N1,520 per Dollar at the Foreign Exchange (FOREX) parallel market from the N1,470 per Dollar traded on Friday.
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. However, Nigeria denied Binance’s bribery accusation, stating that it is a distraction from the exchange’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 its crackdown on the platform to stabilize the local currency. Binance has faced increasing regulatory scrutiny globally, with charges filed against them by the Commodity Futures Trading Commission (CFTC) and the US Securities and Exchange Commission (SEC) for allegedly operating illegally and evading federal laws.
