Crypto Crackdown in Nigeria: SEC Eyes Naira Delisting from P2P and Unveils Regulatory Plans

The Nigerian cryptocurrency landscape is facing a potential overhaul as the Securities and Exchange Commission (SEC) proposes a two-pronged approach: delisting the Naira from Peer-to-Peer (P2P) platforms and introducing comprehensive regulatory guidelines.

Dr. Emomotimi Agama, the Acting Director-General of SEC, emphasized concerns about the impact of P2P crypto trading on the Naira’s exchange rate. The proposed delisting aims to tackle potential market manipulation within the P2P space.

Agama noted that the recent surge in peer-to-peer (P2P) crypto trading has reportedly impacted the Naira’s exchange rate, prompting the SEC to consider delisting the Naira from P2P platforms to curb market manipulation.

Agama urged for cooperation from the crypto community in identifying and reporting bad actors. The SEC encourages “naming and shaming” individuals or entities engaged in practices detrimental to the Nigerian financial system.

Fresh Regulatory Framework for Crypto

The SEC is actively developing a set of regulations encompassing various aspects of the digital asset sector. These guidelines will cover areas like wallet services, digital asset custody, and crypto fund management. The objective is to establish a well-defined regulatory framework that fosters innovation while safeguarding national economic interests.

Collaboration for a Thriving Crypto Market

Dr. Agama stressed the importance of collaboration between the SEC and the crypto industry. Streamlined licensing processes, clear guidance, and open communication are key aspects of the SEC’s approach. This collaborative effort aims to create a transparent and thriving digital asset ecosystem in Nigeria.

These proposed measures by the SEC signal a stricter regulatory stance on cryptocurrency in Nigeria. While the delisting of Naira from P2P platforms could limit accessibility for some users, the introduction of clear regulations offers more stability and legitimacy to the industry. The long-term impact of these proposals will depend on their implementation and the industry’s response.