In a move to regulate the cryptocurrency market and stabilize the national currency, the Federal Government of Nigeria, through the Securities and Exchange Commission (SEC), has announced its intention to ban the use of Naira on crypto trading platforms. This decision comes as part of a broader effort to combat the manipulation of the Naira’s value in the foreign exchange market.
The Director General of the SEC, Emomotimi Agama, confirmed the development during a virtual conference with blockchain stakeholders. Agama highlighted the government’s commitment to drafting new regulations that will govern the crypto sector, ensuring that operations are conducted with integrity and in line with global standards.
The ban is expected to affect peer-to-peer (P2P) platforms, which have been identified as channels for speculative activities that undermine the Naira. Operators in the crypto space have allegedly used these platforms to manipulate the exchange rate, prompting the government to take decisive action.
The Nigerian crypto market, estimated at $57 billion, has seen significant growth in recent years. However, this growth has been accompanied by concerns over the market’s impact on the country’s financial stability. The SEC’s upcoming regulations aim to address these concerns by delisting the Naira from P2P exchanges and implementing measures to prevent market abuse.
This regulatory crackdown follows the Central Bank of Nigeria’s (CBN) previous actions, including the lifting of a ban on banks facilitating crypto transactions and issuing guidelines for financial institutions operating with entities that provide crypto services.
As the government prepares to roll out these new regulations, the crypto community awaits further details on the implementation and impact of the ban. The SEC’s move underscores Nigeria’s cautious approach to embracing digital currencies while striving to protect its economy from potential risks.
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