2 weeks ago
Nigeria’s National Security Adviser (NSA) has labeled crypto trading arsenic a nationalist information threat, signaling an impending crackdown connected peer-to-peer (P2P) crypto transactions, according to section media reports and CryptoSlate sources.
The determination follows the determination of astatine slightest 3 large Nigerian fintech startups — Moniepoint, Paga, and Palmpay — to artifact accounts progressive successful crypto dealings and study specified activities to instrumentality enforcement.
According to Moniepoint CEO Tosin Eniolorunda, the NSA’s classification is expected to pave the mode for caller regulations banning P2P crypto trading, with an authoritative announcement anticipated soon.
This represents a notable displacement successful regulatory stance, peculiarly aft the Bola Tinubu medication had antecedently shown a much lenient cognition toward crypto. In fact, successful December 2023, the Central Bank of Nigeria lifted a two-year prohibition connected crypto transactions, hinting astatine a much welcoming regulatory environment.
However, caller months person seen a reversal successful this trend, with authorities blaming crypto speculators for exacerbating the volatility of the overseas speech (FX) market. The projected prohibition connected P2P trading is based connected the Central Bank’s assertion that crypto traders exploit this method to manipulate the Nigerian naira done pump-and-dump schemes.
Central Bank Governor Olayemi Cardoso alleged successful February 2024 that Binance had facilitated $26 cardinal successful untraceable transactions, starring to a crackdown connected the speech and the freezing of implicit 1,000 slope accounts linked to P2P transactions.
In a related development, 4 salient fintech firms were precocious directed to halt the opening of caller lawsuit accounts, though the root of this directive remains unclear.
Moniepoint’s CEO, Tosin Eniolorunda, confirmed that the determination was astatine the behest of the NSA, who expressed concerns implicit the easiness with which fintech platforms facilitate relationship openings, peculiarly Tier 3 accounts.
While a spokesperson for the NSA declined to supply further details, this improvement highlights the expanding scrutiny implicit the accelerated proliferation of accounts facilitated by fintech startups. Traditional banks person agelong raised concerns that specified accounts service arsenic conduits for illicit funds.
Responding to these concerns, the Central Bank amended its rules successful December 2023, mandating fintech startups to verify the identities of each relationship holders by March 2024.
As Nigeria braces for further regulatory measures successful the crypto space, the destiny of P2P trading remains uncertain amid mounting nationalist information concerns and evolving regulatory landscapes.
The station Nigeria poised to outlaw P2P crypto trading implicit nationalist information concerns appeared archetypal connected CryptoSlate.
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