Wed, May 08, 2024 at 14:12

• 

  Kang-hoon

  • Hello Annie.

  • Today, I want to discuss a recent development in Nigeria's stance towards cryptocurrency.

  • The government is proposing a ban on P2P (Peer-to-Peer) trading platforms that utilize the local currency, Naira, due to concerns over its manipulation.

  • 
• Annie

  • Oh, really?😮 That sounds serious.

  • Why are they considering such a drastic measure?

  
• 

  Kang-hoon

  • The Nigerian Securities and Exchange Commission (SEC) alleges that crypto participants and exchanges are manipulating the Naira's value through P2P transactions.

  • 

  • The newly appointed Director-General, Emomotimi Agama, suggests delisting the Naira from all P2P platforms as a solution.

• Annie

  • So, if the Naira is delisted from these platforms, what would be the impact on Nigerian crypto investors?

  
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• 

  Kang-hoon

  • The potential P2P ban would significantly restrict Nigerian crypto investors.

  • P2P platforms offer a convenient and often cheaper way to buy and sell crypto using local currency compared to traditional exchange channels.

  • With the Naira delisted, Nigerians would face hurdles in entering and exiting the crypto market, potentially hindering its growth and adoption.

  • 
• Annie

  • That sounds like a big setback for them.😕 And what about the crypto exchanges?

  • How are they reacting to this?

  
• 

  Kang-hoon

  • The regulatory heat isn't just scorching P2P platforms.

  • Leading crypto exchange Binance suspended all Naira-related services following the arrest of two executives and accusations of flouting regulations.

  • Following Binance's lead, OKX, another major crypto exchange, delisted the Naira from its P2P marketplace on May 3rd.

• Annie

  • Wow, it seems like a tough situation for both the investors and the exchanges.😟 But can't Nigerians use international P2P platforms or other methods to circumvent these restrictions?

  
• 

  Kang-hoon

  • Yes, that's a possibility.

  • Crypto by its nature transcends borders, and Nigerians could potentially turn to international P2P platforms or alternative methods to circumvent restrictions.

  • However, the details of the proposed broader regulations targeting the local crypto industry are yet to be revealed.

• Annie

  • I see...

  • So, what does this mean for the future of cryptocurrency in Nigeria?

  
• 

  Kang-hoon

  • The situation paints a bleak picture for Nigerian crypto enthusiasts.

  • Local investors face limited options, major exchanges are wary of operating in the country, and the regulatory landscape remains opaque.

  • While the government seeks to exert control, this clampdown might stifle innovation and push Nigerians towards unregulated avenues within the crypto space.

  • 
• Annie

  • That's quite concerning...😔 So, is this news good or bad?

  • And how will it affect the market?

  
• 

  Kang-hoon

  • From my perspective, this news is bad.

  • It creates uncertainty in one of Africa's largest crypto markets and could potentially discourage investment and innovation.

  • The ripple effects could be felt across Africa's burgeoning crypto market.

  • Upon comprehensive consideration, this news is perceived as a 😱Bearish.