Nigeria has finally eased off and eased off the cryptocurrency market under pressure from the IMF and the world.

Nigerian experts say central bank policy drives users to P2P crypto trading platforms

Nigerian blockchain and crypto industry stakeholders believe that the Central Bank of Nigeria’s (CBN) previous decision to exclude cryptocurrency entities from the banking system has promoted 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 using 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 the trading volume of P2P cryptocurrency platforms. However, the surge in P2P cryptocurrency trading soon caused concerns among multiple entities such as the Money Changers Association.

However, it was not until early 2024 that Nigerian authorities began to take action against P2P cryptocurrency trading platforms. Initially, authorities pressured major exchanges to set a cap on the exchange rate of the US dollar against the Nigerian naira. Subsequently, Nigerian authorities instructed 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 the naira. This concern has reportedly led Nigerian authorities to consider removing the naira from all platforms. The Nigerian Securities and Exchange Commission recently confirmed that it will require P2P platforms to remove the naira, raising concerns that the decision could have a serious impact on legitimate businesses.