Nigerian expert: Central bank policy prompts users to turn to P2P crypto trading platforms

According to stakeholders in the Nigerian blockchain and crypto industry, the Central Bank of Nigeria’s (CBN) previous decision to exclude cryptocurrency entities from the banking system has facilitated the growth of peer-to-peer (P2P) cryptocurrency trading. Stakeholders believe that the CBN’s lack of understanding and refusal to recognize the cryptocurrency industry has led to malicious actors exploiting P2P platforms for their own ends. The ban or directive issued by the CBN on February 5, 2021, while successfully curbing the operations of centralized exchanges, also inadvertently drove up trading volumes on P2P cryptocurrency platforms. However, the surge in P2P cryptocurrency trading soon raised concerns among multiple entities such as the Money Changers Association. It was not until early 2024, however, that Nigerian authorities began to take action against P2P cryptocurrency trading platforms. Initially, authorities pressured major exchanges to impose a cap on the exchange rate between the U.S. dollar and the Nigerian naira. Subsequently, Nigerian authorities directed the Binance exchange platform to stop supporting the naira. However, some in the Nigerian government believe that currency manipulators may have moved to P2P platforms that have not yet removed naira trading. This concern reportedly led Nigerian authorities to consider removing the naira from all platforms. Nigeria’s Securities and Exchange Commission recently confirmed that it will require P2P platforms to delist the naira, sparking concerns that the decision could have a serious impact on legitimate businesses. (Bitcoin.com)