Nigeria Proposes Ban on Peer-to-Peer Cryptocurrency Trading amid Crackdown

Nigeria Intensifies Cryptocurrency Crackdown with Proposed Ban on P2P Trading

In a move to tighten controls on the cryptocurrency sector, Nigeria is reportedly considering a ban on peer-to-peer (P2P) trading in the country’s national currency, the naira. This proposed ban comes as part of the West African country’s efforts to address the decline of its national currency, which it attributes to the influence of the crypto sector.

Emomotimi Agama, the director general of Nigeria’s Securities and Exchange Commission (SEC), announced that new regulations targeting crypto exchanges, digital asset custodians, and other industry players would be released in the coming days. Agama emphasized the need to delist the naira from the P2P space to prevent manipulation and stabilize the exchange rate.

While Nigeria lifted a ban on transacting in cryptocurrencies last year, the Central Bank of Nigeria has continued to express the need for regulation of virtual asset service providers (VASPs). The recent crackdown on crypto platforms like Binance aims to curb currency speculation that has devalued the naira.

Following the crackdown, Nigerian authorities arrested two executives from Binance, accusing them of tax evasion, currency speculation, and money laundering. One executive, Nadeem Anjarwalla, managed to escape before being located in Kenya, while the other, Tigran Gambaryan, remains in custody awaiting trial.

Binance CEO Richard Teng has called for Gambaryan’s release and criticized the Nigerian government’s actions, stating that detaining mid-level employees sets a dangerous precedent for companies worldwide.

As Nigeria continues its cryptocurrency crackdown, the future of P2P trading and the crypto sector in the country remains uncertain. Stay tuned for updates on this developing story.