Regulatory Scrutiny
Nigeria’s currency, the naira, is in a downward spiral, and the government blames cryptocurrency for its woes. The Central Bank of Nigeria (CBN) has accused crypto platforms of manipulating the currency’s value and undermining monetary policy.
Exchanges Under Fire
Major crypto exchanges like Binance, OKX, and now KuCoin have suspended naira support on their platforms due to fears of regulatory action or a ban. KuCoin claims it’s a “temporary pause” for compliance, but the timeline for resumption is unclear.
P2P Ban Looming
The Nigerian Securities and Exchange Commission (SEC) is considering a ban on crypto P2P trading, which would push transactions into less regulated channels like encrypted messaging apps. Experts warn of increased scams and exploitative rates.
CBN and EFCC Crackdown
The CBN has ordered banks to freeze crypto transactions, cutting off legal avenues for Nigerians to buy or sell crypto. The Economic and Financial Crimes Commission (EFCC) has frozen over 1,000 crypto trader accounts for alleged money laundering and terrorism financing.
Effectiveness Questioned
Despite the crackdown, the naira continues to depreciate. Critics argue that blaming crypto is a scapegoat and that the government’s lack of transparency and clear regulations are hindering legitimate crypto businesses.
