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 line with native media stories and CryptoSlate sources.
The transfer follows the choice of at the least three main Nigerian fintech startups — Moniepoint, Paga, and Palmpay — to dam accounts concerned in crypto dealings and report such actions to regulation enforcement.
In response to Moniepoint CEO Tosin Eniolorunda, the NSA’s classification is anticipated to pave the best way for brand new laws banning P2P crypto buying and selling, with an official announcement anticipated quickly.
This represents a notable shift in regulatory stance, notably after the Bola Tinubu administration had beforehand proven a extra lenient angle towards crypto. In truth, in December 2023, the Central Financial institution of Nigeria lifted a two-year ban on crypto transactions, hinting at a extra welcoming regulatory surroundings.
Nonetheless, current months have seen a reversal on this pattern, with authorities blaming crypto speculators for exacerbating the volatility of the overseas change (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 control 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 change and the freezing of over 1,000 financial institution accounts linked to P2P transactions.
In a associated improvement, 4 distinguished fintech corporations have been not too long ago directed to halt the opening of latest 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 considerations over the convenience with which fintech platforms facilitate account openings, notably Tier 3 accounts.
Whereas a spokesperson for the NSA declined to offer additional particulars, this improvement highlights the rising scrutiny over the fast proliferation of accounts facilitated by fintech startups. Conventional banks have lengthy raised considerations that such accounts function conduits for illicit funds.
Responding to those considerations, 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 area, the destiny of P2P buying and selling stays unsure amid mounting nationwide safety considerations and evolving regulatory landscapes.