Business & Strategy

Federal Government Moves to Delist Naira from Peer-to-Peer Crypto Platforms

Written by Jerry Alomatu on May 7, 2024

News Views: 64

The Securities and Exchange Commission (SEC), acting on behalf of the Federal Government, has announced plans to remove the naira from all peer-to-peer (P2P) cryptocurrency platforms. This decision is part of the government’s efforts to combat exchange rate manipulation and dollar racketeering.

The move follows recent actions by the Federal Government to regulate Nigeria’s cryptocurrency market, which is estimated to be worth $57 billion. Emomotimi Agama, the newly-appointed Director-General of the Commission, revealed the government’s intention during a meeting with members of the Nigerian blockchain industry.

Agama stated that the government is drafting new regulations to govern the crypto sector and emphasized the need to delist the naira from P2P platforms to prevent manipulation. He urged cooperation from the local crypto community in addressing these issues as regulations are rolled out in the coming days.

This announcement comes shortly after the Central Bank of Nigeria instructed payment service banks to caution customers against engaging in crypto transactions. Some local exchanges, such as OKX and Bitbarter, have already halted naira services in solidarity with the government.

Agama urged members of the crypto community to identify and expose individuals involved in manipulating the naira, stressing the government’s commitment to addressing such practices. He emphasized the importance of patriotism and encouraged responsible behavior within the industry.

Furthermore, Agama highlighted the SEC’s focus on establishing an innovative digital asset regulatory regime to position Nigeria as Africa’s digital asset powerhouse. This initiative aims to drive wealth and enhance the country’s capital market.

The meeting with the blockchain industry stakeholders sought collaboration to address challenges facing the crypto space and propel market growth. Dr. Babatunde Obrimah, Chairman of the Fintech Association of Nigeria, commended the SEC’s efforts and pledged the association’s support in sanitizing the virtual ecosystem.

In response, Chukwuemeka Ezike, co-founder of local exchange Bitbarter.io, expressed willingness to collaborate with the government to resolve issues affecting the naira’s value. He emphasized the importance of finding solutions to promote sectoral growth while ensuring compliance with regulations.

The government’s actions underscore its commitment to regulating the crypto market and safeguarding national economic interests. With the support of industry stakeholders, efforts are underway to create a conducive environment for fintech innovation while addressing illicit activities within the crypto space.