Nigeria Weighs Tighter Rules on Crypto Market, Calls Meeting
The Nigeria crypto market is drawing scrutiny from the government amid worries over unlawful activities and currency manipulation.
The country saw a massive $56.7 billion in crypto transactions between July 2022 and June 2023, according to blockchain analysis firm Chainalysis.
In a major move, the Securities and Exchange Commission (SEC) has called for an industry-wide meeting with crypto stakeholders on Monday. The goal? To potentially put tighter rules and oversight in place.
According to sources, the government may temporarily prohibit peer-to-peer (P2P) cryptocurrency trading to allow for the development of a comprehensive regulatory framework. Some experts suggest that instead of implementing an outright ban, authorities may work with industry partners to devise new limitations.
The meeting comes after the Central Bank of Nigeria prohibited major fintech companies from accepting new customers pending a review of their Know-Your-Customer practices. Major Fintechs like OPay and PalmPay have already warned customers against trading cryptocurrencies on their platforms, threatening account freezes.
The crackdown has sparked a backlash from Nigeria’s 33.4 million active crypto traders, many of whom depend on the industry as their main income.
Industry bodies like the Blockchain Industry Coordinating Committee of Nigeria (BICCoN) and the Stakeholders in the Blockchain Technology Association of Nigeria (SIBAN) are preparing to negotiate with regulators. Their aim? To ensure compliance while nurturing innovation and foreign investment in the crypto sector.
As the Monday meeting nears, the crypto community holds its breath, wondering if Nigeria will embrace or restrict the digital asset revolution reshaping global finance.