The Nigerian government is set to implement stringent regulations for the country’s booming cryptocurrency industry, which is estimated to be worth a staggering $57 billion.
The move comes as authorities aim to address concerns over potential risks associated with digital currencies.
These new rules are expected to provide a framework that will enhance transparency and security within the crypto sector.
READ ALSO: Computer Crypto Gaming Will Be the Future of E-Commerce
With the increasing popularity of cryptocurrencies in Nigeria, the government’s proactive approach is seen as a necessary step to safeguard investors and ensure the stability of the market.
There are discussions underway regarding the potential suspension of the peer-to-peer cryptocurrency market, which is valued at $56.7 billion. The Securities and Exchange Commission is set to meet with digital asset operators on Monday to address this matter.
Nigeria has experienced a significant increase in its volume of cryptocurrency transactions, reaching $56.7 billion between July 2022 and June 2023. This information comes from the 2023 Geography of Cryptocurrency Report, conducted by Chainalysis, an international blockchain analysis firm based in the United States of America.
In a significant development, the SEC has taken action to strengthen regulatory oversight in the cryptocurrency industry. This move is part of a larger effort by the Federal Government to address concerns surrounding illicit activities and the manipulation of the naira exchange rate.
In a recent development, the Central Bank of Nigeria has put a halt to the onboarding of new customers by major fintech firms.
The decision comes as part of an ongoing audit of their know-your-Customer process. In response to regulatory measures, prominent fintech companies, such as Opay and PalmPay, have issued cautionary emails to their customers.
The emails, sent on Friday, strongly advise against participating in cryptocurrency or any form of virtual currency trading through their respective apps. Furthermore, these companies have warned that any accounts found involved in such activities may be subject to suspension or termination.
The decision to potentially block accounts has sparked intense backlash, especially from the 33.4 million individuals engaged in active cryptocurrency trading, a significant number of whom depend on it as their main source of income.
According to sources, it has been revealed that the government is considering announcing a temporary suspension of P2P crypto trading in order to develop a comprehensive set of regulations for better oversight of the industry.
According to insiders familiar with the meeting, the government is considering the possibility of involving cryptocurrency stakeholders in the development of a new set of regulations aimed at improving oversight in the industry.
In an interview with Sunday PUNCH, the Chairman of BICCoN, Lucky Uwakwe, said that the group would be seeking to reach a middle ground with the regulator, which had so far this year introduced stiffer guidelines for digital asset operators, as well as a proposed increase in the registration fees.
Ukakwe said the meeting “is for us to try and bring the industry to be compliant and remove bad actors who abuse technology, especially the concern raised by the government on those that use the technology for market manipulation of naira.
“We also hope that innovation in the industry is encouraged to enable the industry to gain more foreign inflow that will aid the current administration’s drive for foreign investment into the nation, as seen in other countries such as China and the UAE, and not to stifle the industry.”
