Regulation
Nigeria bans Naira in P2P crypto to reduce manipulation risks
The Nigerian cryptocurrency market is preparing for significant changes. The Securities and Exchange Commission (SEC) recently announcement plans to implement new regulations to strengthen its control over cryptocurrency activities in the country. The move comes amid concerns over possible manipulation of the local currency, the naira, through peer-to-peer (P2P) platforms.
Emomotimi Agama, Director General of the SEC, revealed this during an interactive session with the Nigerian blockchain industry. The session, titled “Relevant Issues and Charting a Progressive Course for Crypto Regulation in Nigeria,” was a collaborative effort between the SEC and the Blockchain Industry Coordination Committee.
Agama highlighted the delisting of the Naira from all P2P platforms as a crucial step to curb the manipulation of the value of the Naira in the foreign exchange market.
“Removing the Naira from P2P networks will help prevent the level of manipulation that is currently occurring,” Agama remarked. “I need your help to resolve this issue as we roll out regulations in the coming days.”
This announcement follows a recent directive issued by the Central Bank of Nigeria (CBN) to fintech companies. The CBN directive warned these companies against facilitating cryptocurrency transactions for their customers.
Regulatory Changes in the Nigerian Crypto Landscape
Plans drawn up by the Securities and Exchange Commission of Nigeria suggest that the regulatory environment for Nigerian cryptocurrencies will become stricter. However, the exact details of this plan remain unclear. The process of removing the Nigerian naira as legal tender and alternative methods of carrying out cryptocurrency transactions within the new regulated framework have not yet been revealed.
The SEC’s actions reflect a growing global trend of governments seeking to exert more control over the rapidly expanding cryptocurrency market. While concerns over financial stability and money laundering are often cited to justify these regulations, they can also have the potential to stifle innovation and hinder the growth of legitimate cryptocurrency businesses.
Nigeria, a country with a thriving technology sector and a population increasingly attracted to virtual currencies, finds itself at a critical juncture. Upcoming regulations provide an opportunity to establish a framework that promotes responsible innovation while protecting the financial system. Striking a delicate balance between these two goals will be crucial to ensuring the long-term health and growth of the Nigerian digital asset ecosystem.
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