The Securities and Exchange Commission, under the directive of the Federal Government, is taking decisive steps to remove the naira from all peer-to-peer crypto platforms as part of a broader effort to combat exchange rate manipulation and illegal dollar trading activities.
This decision follows recent efforts by the Federal Government to regulate Nigeria’s cryptocurrency market, estimated to be valued at $57 billion.
Emomotimi Agama, the newly-appointed Director-General of the Commission, unveiled this plan during a meeting with members of the Nigerian blockchain industry on Monday, organized by the Blockchain Industry Coordinating Committee of Nigeria.
Agama confirmed that the government is in the process of drafting new regulations to oversee the crypto sector, aiming to address concerns related to manipulation of the naira and exchange rate fluctuations facilitated by P2P platforms.
During the meeting, Agama emphasized the necessity of delisting the naira from P2P platforms to prevent further manipulation and urged cooperation from the local crypto community in implementing these regulations effectively.
This announcement comes on the heels of the Central Bank of Nigeria’s directive to payment service banks to warn customers against engaging in crypto transactions.
Several local exchanges, including OKX and Bitbarter, have already halted naira services in solidarity with the government, underscoring the seriousness of the situation.
In March, the Blockchain Technology Association of Nigeria sought collaboration with the Federal Government to establish proper regulations for the crypto sector, demonstrating a willingness to work towards a mutually beneficial solution.
Agama urged members of the crypto community to identify and expose individuals involved in nefarious activities, stressing the importance of patriotism and adherence to ethical standards.
Under his leadership, the SEC aims to implement an innovative regulatory framework for digital assets that will position Nigeria as a leading digital asset hub in Africa, fostering economic growth and enhancing the country’s capital market.
Stakeholders, including the Fintech Association of Nigeria and BICCoN, expressed support for the SEC’s initiatives and proposed collaborative efforts to address challenges facing the crypto space.
Chukwuemeka Ezike, co-founder of local exchange Bitbarter.io, emphasized the willingness of operators within the ecosystem to assist the government in resolving issues related to the naira’s value and ensuring a transparent and sustainable crypto market.