Nigeria’s Nationwide Safety Adviser (NSA) is ready to label crypto buying and selling as a nationwide safety menace, signaling an impending crackdown on peer-to-peer (P2P) crypto transactions, in accordance with native media experiences and CryptoSlate sources.
The transfer follows the choice of a minimum of three main Nigerian fintech startups — Moniepoint, Paga, and Palmpay — to block accounts concerned in crypto dealings and report such actions to legislation enforcement.
In keeping with Moniepoint CEO Tosin Eniolorunda, the NSA’s classification is anticipated to pave the way in which for brand new rules banning P2P crypto buying and selling, with an official announcement anticipated quickly.
This represents a notable shift in regulatory stance, significantly after the Bola Tinubu administration had beforehand proven a extra lenient angle towards crypto. Actually, in December 2023, the Central Financial institution of Nigeria lifted a two-year ban on crypto transactions, hinting at a extra welcoming regulatory atmosphere.
Nevertheless, latest months have seen a reversal on this development, with authorities blaming crypto speculators for exacerbating the volatility of the overseas alternate (FX) market. The proposed ban on P2P buying and selling is predicated on the Central Financial institution’s assertion that crypto merchants exploit this methodology to govern the Nigerian naira by way of pump-and-dump schemes.
Central Financial institution Governor Olayemi Cardoso alleged in February 2024 that Binance had facilitated $26 billion in untraceable transactions, resulting in a crackdown on the alternate and the freezing of over 1,000 financial institution accounts linked to P2P transactions.
In a associated improvement, 4 distinguished fintech companies have been not too long ago directed to halt the opening of recent buyer accounts, although the supply of this directive stays unclear.
Moniepoint’s CEO, Tosin Eniolorunda, confirmed that the transfer was on the behest of the NSA, who expressed issues over the convenience with which fintech platforms facilitate account openings, significantly Tier 3 accounts.
Whereas a spokesperson for the NSA declined to supply additional particulars, this improvement highlights the rising scrutiny over the fast proliferation of accounts facilitated by fintech startups. Conventional banks have lengthy raised issues that such accounts function conduits for illicit funds.
Responding to those issues, the Central Financial institution amended its guidelines in December 2023, mandating fintech startups to confirm the identities of all account holders by March 2024.
As Nigeria braces for additional regulatory measures within the crypto house, the destiny of P2P buying and selling stays unsure amid mounting nationwide safety issues and evolving regulatory landscapes.
