- Nigeria bolsters crypto crackdown with Naira P2P exchange ban.
- The government has been on a months-long tussle with crypto exchanges.
- Binance and the Nigerian government are still embroiled in a fight.
Regulations in the crypto industry have heated over the past months as governments and financial authorities tighten oversight on the industry. Nigeria, which has had a rather muffled approach to the asset class, has recently championed actions against its local industry, asserting the manipulation of its local currency by market participants and exchanges.
Following many months of tussle with no resolution in sight, local Nigerian crypto investors may now be facing severe restrictions.
Nigeria Crypto Woes Threaten Naira P2P Ban
According to local reports on Tuesday, May 7, the Nigerian government is preparing to remove its native currency, Naira, from all peer-to-peer crypto platforms.
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The development was reportedly made known by the newly appointed Director-General of the Nigerian SEC, Emomotimi Agama, at a meeting with members of the Nigerian blockchain industry, citing efforts to tackle its currency manipulators.
“That is one of the things that must be done to save this space; the delisting of the naira from the P2P platforms to avoid the level of manipulation that is currently happening,” he stated.
If imposed, the restriction will prohibit global and local crypto service providers from offering peer-to-peer exchange or trading pairs with the naira, potentially resulting in significant restrictions for local investors.
Agama also highlighted that more regulations will follow in the coming weeks, targeting the complete reform of the local industry and service providers within its jurisdiction. Despite the recency of the announcement, several crypto exchange platforms have already halted support for the naira.
Crypto Exchanges Delist Naira
Scapegoated by the Nigerian government at the center of the currency manipulation drama, the leading exchange, Binance, was the first to suspend all naira-related services.
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The decision, announced on March 5, 2024, came amid the ongoing regulatory tussle between the exchange and the government, resulting in the arrest of two of its executives, Nadeem Anjarwalla and Tigran Gambaryan.
Despite its exit, the Binance Nigeria saga failed to cease, followed by official criminal charges against the exchange. Gambaryan and Anjarwalla have also been slapped with tax evasion by the Federal Inland Revenue Service (FIRS).
Shortly after, on May 3, crypto exchange OKX delisted the naira from its p2p marketplace. While the exchange did not cite regulatory woes with the government, it confirmed “a change in local market requirements,” asserting that the service would no longer be available to investors.
Read more about the latest update in the Binance Nigeria crypto drama:
Binance CEO Urges Nigeria to Release Tigran Gambaryan
The November Poloniex hacker has reappeared after months of dormancy; read more:
Poloniex Hacker Returns to Launder $3.5M via Tornado Cash
