Nigeria Imposes Ban on P2P Crypto Trading Amidst Naira (NGN) Depreciation: Impact on Bitcoin (BTC) and Other Cryptocurrencies

• Nigeria has announced plans to ban Naira peer-to-peer transactions, citing negative impacts on the local currency.
• The Director General of the Securities and Exchange Commission (SEC) has indicated that new regulations for crypto exchanges are imminent.
• This comes in the wake of the Naira losing 65% of its value against the US Dollar.

Nigeria is set to impose a ban on Naira peer-to-peer transactions and introduce new regulations for crypto exchanges, following the Naira’s significant depreciation against the US Dollar.

Nigeria Plans to Ban Naira Peer-to-Peer Transactions

According to Bloomberg reports, Nigeria has declared its intent to outlaw Naira peer-to-peer transactions due to perceived negative impacts on the local currency. This decision was disclosed by Emomotimi Agama, the Director General of the Securities and Exchange Commission (SEC), during a meeting with fintech professionals on Monday.

Imminent Regulations for Crypto Exchanges

Agama announced that new regulations targeting crypto exchanges, digital asset custodians, and other related sectors will be rolled out “in the coming days.” In a meeting with the Abuja-based SEC, Agama was quoted as saying, “The thing that needs to be done is delisting the naira from the P2P space in order to avoid the level of manipulation that is currently happening.” He added, “Recent concerns regarding crypto P2P traders and their perceived impact on the exchange rate of the naira has underscored the need for collective action.”

Nigeria’s Stance on Cryptocurrency

Nigeria’s latest stance on cryptocurrency follows its recent ban on Binance, the world’s largest crypto exchange, and the subsequent arrest of two of its executives in February. While one executive managed to evade capture, Tigran Gambaryan, the other executive, has been detained at the Kuje correctional center in Abuja. Gambaryan is set to face trial on charges related to tax evasion, currency speculation, and money laundering this month.

Government’s Position on Cryptocurrency

Agama reiterated the government’s position, stressing that “Manipulations and all forms of activities that undermine our national interest would not be acceptable.” Since the relaxation of currency regulations in June, Nigerians have turned en mass to cryptocurrency as a safeguard following the Naira’s 65% value loss against the US Dollar.

Conclusion

In conclusion, Nigeria’s decision to ban Naira P2P transactions and introduce new regulations for crypto exchanges is a significant development in the country’s cryptocurrency landscape. This move, triggered by the Naira’s depreciation and concerns over currency manipulation, underscores the government’s intent to exert greater control over digital asset transactions. The impact of these changes on Nigeria’s burgeoning crypto market remains to be seen.