The Federal Government, in a bid to combat exchange rate manipulators and dollar racketeers, has announced plans to delist the naira from all peer-to-peer (P2P) crypto platforms.
This initiative, disclosed by the newly-appointed Director-General of the Securities and Exchange Commission (SEC), Emomotimi Agama, underscores the government’s efforts to regulate Nigeria’s burgeoning crypto market, estimated at $57 billion.
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Agama made this revelation during a meeting with members of the Nigerian blockchain industry, organized by the Blockchain Industry Coordinating Committee of Nigeria. He emphasized the necessity of drafting new regulations to govern the crypto sector and address concerns of manipulation within the industry.
The move follows recent directives from the Central Bank of Nigeria (CBN) instructing payment service banks to advise customers against crypto transactions.
The decision to delist the naira from P2P platforms aims to curb the alleged manipulation of the national currency and exchange rates by operators in the crypto space. Some local exchanges, such as OKX and Bitbarter, have already suspended naira services in solidarity with the government.
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Agama urged members of the crypto community to cooperate with authorities and expose individuals involved in nefarious activities.
In response to these developments, stakeholders in the fintech and crypto sectors have expressed their support for regulatory efforts. Dr. Babatunde Obrimah, Chairman of the Fintech Association of Nigeria, commended the SEC for its proactive measures and proposed partnership with the ecosystem.
Similarly, the Blockchain Industry Coordinating Committee of Nigeria requested the establishment of a working group to tackle challenges facing the crypto space.
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Meanwhile, major fintech firms, including Opay and PalmPay, have cautioned customers against engaging in cryptocurrency trading on their platforms. This follows regulatory action by the Economic and Financial Crimes Commission (EFCC), which obtained a court order to freeze over 1,100 bank accounts linked to illegal foreign exchange transactions, money laundering, and terrorism financing.
Grassroots Parrot had reported that the government’s crackdown on crypto-related activities underscores its commitment to safeguarding financial integrity and preventing illicit financial practices.
As regulatory measures evolve, stakeholders seek to strike a balance between fostering innovation in the crypto space and ensuring compliance with established regulations.