By John Ikani
The Nigerian government is tightening its grip on the cryptocurrency sector, with a fresh focus on regulating peer-to-peer (P2P) trading within the nation.
Reports from local media outlet Punch suggest that the Securities Exchange Commission is contemplating a halt to P2P trading following a scheduled meeting on May 6.
This regulatory move aims to tackle concerns regarding potential cryptocurrency misuse for illicit activities and the risk of devaluing the local currency, the naira.
Sources hint that any suspension could be temporary, allowing room for the government to craft comprehensive regulations in collaboration with crypto industry players.
“The newly appointed Director General of the Nigeria Securities and Exchange Commission has proposed an industry-wide meeting with the Nigeria blockchain community. The meeting will be facilitated by the Blockchain Industry Coordinating Committee of Nigeria,” said the Blockchain Industry Coordinating Committee of Nigeria (BICCoN).
Hopes are high among crypto stakeholders that this forthcoming meeting will bring much-needed clarity to the sector’s regulatory landscape.
Obinna Iwuno, President of the Stakeholders in Blockchain Technology Association of Nigeria (SIBAN), expressed optimism about finally receiving definitive guidance.
“There is a whole lot going on. It is not just clear the direction as we speak, but hopefully, on Monday, we will get to have a position,” Iwuno said.
The Nigerian central bank had previously hinted at potential trade regulations after barring major fintech firms from onboarding new customers as part of a KYC process audit.
Notably, some prominent fintech startups—Moniepoint, Paga, and Palmpay—opted to block accounts engaged in crypto transactions and report such activities to law enforcement.
Role of Crypto in Nigeria
This latest regulatory push may pose challenges for Nigeria’s estimated 33.4 million cryptocurrency traders, many of whom rely on trading as a source of income in Africa’s most populous country.
Many Nigerians have turned to cryptocurrencies as a means to hedge against the devaluation of the local currency, the naira, which has been on a downward trajectory against the United States dollar due to foreign currency shortages.
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