Nigeria's economic woes have influenced its decision to ban P2P cryptocurrency trading to stabilize the currency.
Nigeria has been trying to control the #cryptocurrency market through increased regulation and crackdown on exchanges.
Binance's CEO criticized the detention of its executives by Nigerian authorities as a "dangerous precedent.
Nigeria's Securities and Exchange Commission (SEC) has announced plans to ban peer-to-peer (P2P) cryptocurrency trading. The move is part of a wider crackdown that includes the arrest of two #Binance executives.
Nigerian regulators have heightened tensions in the cryptocurrency sector. There is also growing concern among global cryptocurrency companies about the regulatory framework in the region.
Emotimi Agama, director general of the SEC, expressed serious concerns about the impact of P2P transactions on the Nigerian naira. Agama stressed the urgent need for such measures to stabilize the Nigerian currency.
There is need to exclude the naira from P2P transactions to avoid the currency manipulation that is currently taking place. " [Recent concerns about cryptocurrency P2P traders and the impact they can have on the naira exchange rate underscore the need for collective action," Agama said.
Peer-to-peer platforms allow direct trading between crypto investors, bypassing intermediaries. This approach could therefore raise concerns with Nigerian regulators.
In addition, Nigerian authorities have previously alleged that Binance and other crypto exchanges manipulated prices in dollars. These prices were not linked to the value of the Nigerian naira set by the central bank.
As a result, speculators were forced to take risks by using #cryptocurrency exchange prices as a standard for currency transactions. This problem is particularly noteworthy given that Nigeria suffers from inflation.
It is important to note that Tigran did not travel to Nigeria as a "decision maker" or "negotiator.
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