- Nigeria plans to ban Naira peer-to-peer transactions.
- The SEC Director General signals forthcoming regulations for crypto exchanges.
- Naira’s recorded a 65% value loss against the US Dollar.
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.
Emomotimi Agama, the Director General of the Securities and Exchange Commission (SEC), disclosed this decision during a meeting with fintech professionals on Monday. 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 on Monday evening, 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 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.
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.
In February, the Governor of the Central Bank of Nigeria, Olayemi Cardoso, alleged that Binance facilitated unauthorized naira transactions on its platform. As a result, Nigerian authorities took measures to restrict such activities.
Speaking on behalf of the commission, Agama stated that “SEC will not hesitate to utilize all the powers within its mandate to handle issues that are negative and pose a threat to national interest.
Disclaimer: The information presented in this article is for informational and educational purposes only. The article does not constitute financial advice or advice of any kind. Coin Edition is not responsible for any losses incurred as a result of the utilization of content, products, or services mentioned. Readers are advised to exercise caution before taking any action related to the company.
