In response to growing concerns over exchange rate manipulation and dollar racketeering in Nigeria’s crypto market, the Federal Government, through the Securities and Exchange Commission (SEC), has announced plans to delist the naira from all peer-to-peer (P2P) crypto platforms.
The move, disclosed by SEC’s Director-General, Emomotimi Agama, during a meeting with members of the Nigerian blockchain industry, underscores the government’s commitment to addressing malpractices in the crypto sector.
Recent efforts by the government to regulate Nigeria’s burgeoning crypto market, estimated at $57 billion, have prompted the drafting of new regulations aimed at curbing manipulative activities.
Agama emphasized the need for cooperation from the local crypto community in implementing these regulations, urging stakeholders to identify and expose manipulative practices detrimental to the national currency.
Stakeholders, including the Fintech Association of Nigeria and the Blockchain Industry Coordinating Committee of Nigeria, have expressed willingness to collaborate with the SEC to sanitize the virtual ecosystem.
In addition to regulatory scrutiny on crypto platforms, recent actions by the government have targeted fintech compliance with Know Your Customer (KYC) standards to prevent financial crimes such as money laundering and terrorist financing.
The government’s response to crypto-related activities extends to freezing bank accounts associated with illegal foreign exchange transactions, reflecting a broader effort to safeguard the integrity of the financial system.
As Nigeria’s crypto market continues to grow, the Federal Government’s regulatory interventions aim to promote transparency, prevent financial crimes, and protect the national economy.
