Nigerian Crypto Exchanges and P2P Merchants Prepare for Competition After Ban Lift

According to Cointelegraph: The lifting of restrictions on Nigerian banks to facilitate cryptocurrency transactions by the Central Bank of Nigeria (CBN) on December 22 has led to an anticipated increase in competition between crypto-fiat exchanges and peer-to-peer (P2P) merchants. The crypto community expects that the shift will disrupt the dominance of P2P merchants, which grew in response to the previous ban imposed by CBN. Nathaniel Luz, co-founder and CMO of Flincap, expressed that this change in policy would be a significant boon for the industry, indicating Nigeria's readiness to house and support crypto businesses. Luz also pointed out that this should serve as a call to action for institutional exchanges to prepare for entry into the Nigerian market – their absence during the period of the ban boosted P2P transactions at the expense of other crypto enterprises. Luz anticipates a "survival of the fittest" scenario where crypto-fiat exchanges and P2P merchants would compete for dominance in the world's largest crypto P2P market. When asked if registration requirements with the SEC would hinder exchanges from establishing businesses in Nigeria, Luz acknowledged that while it might present a challenge for startups, securing the SEC license would ultimately be beneficial for the crypto sector. In 2021, the CBN enacted a ban on all regulated financial institutions from providing services to crypto exchanges, a move that was reversed in the recent circular due to growing global demand and adoption of cryptocurrencies. The decision makes it untenable to maintain the stringent restrictions implied on financial institutions in 2021.