The Federal Government, through the Securities and Exchange Commission (SEC), is initiating steps to remove the naira from all peer-to-peer (P2P) crypto platforms as part of its efforts to combat exchange rate manipulation and illegal dollar transactions.
This move comes amidst the Federal Government’s recent endeavors to regulate Nigeria’s crypto market, which is estimated at $57 billion. Emomotimi Agama, the newly-appointed Director-General of the Commission, revealed this plan during a meeting with members of the Nigerian blockchain industry organized by the Blockchain Industry Coordinating Committee of Nigeria.
Agama confirmed that the government is drafting new regulations to govern the crypto sector. The decision to delist the naira from P2P platforms aims to curb manipulation of the currency and exchange rates, which some operators in the crypto space allegedly exploit.
The announcement follows the Central Bank of Nigeria’s directive to payment service banks to warn customers against engaging in crypto transactions. Some local exchanges, such as OKX, Bitbarter, and others under the Blockchain Technology Association of Nigeria, have already ceased naira services in solidarity with the government.
In March, SiBAN sought collaboration with the Federal Government for proper regulation after developing the Virtual Assets Service Providers Code of Conduct in 2022. Agama urged members of the crypto community to expose those involved in manipulating the naira and emphasized the importance of patriotism in the industry.
Under Agama’s leadership, the SEC aims to establish an innovative digital asset regulatory framework to position Nigeria as Africa’s digital asset powerhouse, promoting wealth creation and catalyzing the country’s capital market growth. The proposed measures seek to strike a balance between encouraging innovation and safeguarding national economic interests.