Following heavy scrutiny faced in Nigeria, one of the leading cryptocurrency exchanges, KuCoin, announced the halt of Naira-based peer-to-peer (P2P) trading. On May 15, KuCoin disclosed its decision to suspend P2P trading on its platform that is based on the Nigerian naira as a way to respond to increased scrutiny from Nigerian regulators.
In its official statement, the exchange mentioned that the action takes place in light of the “compliance process” in the country. The move comes after Nigeria’s Securities and Exchange Commission (SEC) held a meeting with industry participants and requested a halt to P2P trading activities.
Kucoin reported that from 08:00 on 15/05/2024 (UTC) it will temporarily suspend all P2P Nigerian Naira (NGN) services and Quick Purchase service through Naira cards. “Ongoing orders will be completed as normal and all other services will remain available. Rest assured that your assets are safe at KuCoin. While we understand this may require some adjustments to your trading preferences, we want to assure you that this decision is a step towards an even better trading experience for you.”
“During this temporary pause, we will focus on ensuring compliance and creating a more robust and secure environment for all of our users. We are fully aware of the impacts made and want to express our gratitude for your understanding and cooperation as we navigate this change together. The KuCoin team is committed to resolving this matter quickly and efficiently. We look forward to resuming Nigerian Naira (NGN) P2P services and quick purchase service through Naira cards in a fully compatible manner. Together, we thrive to build a vibrant and prosperous business ecosystem,” he highlighted.
It is worth remembering that, in recent months, the cryptocurrency exchange, Binance, has been facing challenges with Nigerian regulatory authorities, mainly after the arrest of two company executives and the company’s departure from the country.
Overview of Cryptocurrency Regulations in Nigeria
Nigeria has witnessed a considerable increase in interest in cryptocurrencies, especially evident during the market decline in April 2021.
Following the ban imposed by the Central Bank of Nigeria (CBN) and considering the growing interest in cryptocurrencies in the country, the Nigerian Securities and Exchange Commission (SEC) has taken on the responsibility of formulating a regulatory framework for cryptocurrencies. In May 2022, the SEC published an extensive 54-page document titled “New rules on issuance, offering platforms and custody of digital assets”, made available on its official website.
This document is an important milestone as it sets the path for cryptocurrency service operators in Nigeria and outlines guidelines for banking and financial institutions to interact with digital assets. It also clearly defines digital assets in the Nigerian context and underlines that all digital token offerings, initial coin offerings and any other blockchain-related offerings in the country will be subject to regulation by the Nigerian SEC.
Disclaimer:
The views and opinions expressed by the author, or anyone mentioned in this article, are for informational purposes only and do not constitute financial, investment or other advice. Investing in or trading cryptocurrencies carries a risk of financial loss.
Source: https://portalcripto.com.br/apos-escrutinio-na-nigeria-kucoin-anuncia-interrupcao-da-negociacao-p2p-baseada-em-naira/
