- With the Naira depreciating 65% against the dollar since currency regulations relaxed, locals in Nigeria use crypto as a hedge.
- Regulators say crypto P2P traders influencing the Naira’s exchange rate.
- Nigeria’s SEC Director announced plans for new regulations to overseeing crypto assets.
As Nigeria’s Naira continues to depreciate, locals turn to crypto for financial stability. However, regulators are planning new measures to oversee crypto assets.
Surge in Crypto Adoption Amid Naira Depreciation
Amid the plummeting value of Nigeria’s local currency Naira, there’s recently been a surge in crypto adoption in Nigeria further leading to person-to-person trading. However, the Nigerian authorities have brought an absolute ban on P2P crypto trading activities, in order to prevent any further harm to the local currency.
Regulatory Measures Against P2P Crypto Trades
During a meeting with fintech professionals on Monday, Securities and Exchange Commission Director General Emomotimi Agama announced that new regulations would be introduced “in the coming days” to oversee various aspects of the cryptocurrency sector, including crypto exchanges and digital asset custodians. Speaking on the development, Agama said:
“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. Recent concerns regarding crypto P2P traders and their perceived impact on the exchange rate of the naira has underscored the need for collective action”.
Conclusion
Residents in Africa’s most populous nation have increasingly turned to crypto assets as a hedge against the depreciation of the naira. Since the government relaxed currency regulations in June to enhance the naira’s appeal to foreign investors, the currency has depreciated by 65% against the dollar. In response, the SEC is planning to introduce new regulations to oversee the crypto sector and protect the national interest.
