CBN’s Previous Crypto Policy Fueled The Growth of P2P Trading in Nigeria – Crypto Stakeholders 

Stakeholders in Nigeria’s cryptocurrency sector have stated that the Central Bank of Nigeria (CBN) previous move to exclude cryptocurrency entities from the banking system has spurred the rise of peer-to-peer crypto trading. 

They asserted that the Apex bank’s failure to comprehend and acknowledge the cryptocurrency sector enabled malicious actors to manipulate P2P platforms for their own ends.

Recall that the CBN’s directive on February 5, 2021, effectively hampered the activities of centralized exchanges but inadvertently amplified the activity on P2P cryptocurrency platforms. However, the subsequent rise in P2P cryptocurrency trading quickly raised concerns among various groups, including the money changers association.

Not until early 2024 did Nigerian authorities take action against P2P crypto trading platforms. Initially, they pressured exchanges to limit the USDT-to-naira exchange rate. Later, authorities instructed crypto exchange Binance to remove the naira from its platform.

However, some within the Nigerian government argued that currency manipulators could have shifted to P2P platforms that still support the naira. This concern reportedly prompted authorities to consider removing the naira from all platforms. 

Reports suggest that Nigerian authorities are considering a ban on peer-to-peer crypto trading. A stakeholder has advised members of the Nigerian crypto community to ‘identify any wrongdoers and provide information to the government’.

The recent announcement by the Nigerian Securities and Exchange Commission that it will require P2P platforms to remove the naira has raised fears that such a move could severely impact legitimate businesses.