P2P Crypto Platforms Delist Naira To Combat Currency Manipulation
The P2P platform adheres to the directives from the Office of the National Security Adviser (ONSA) and the Securities and Exchange Commission (SEC), Cryptocurrency exchanges have begun delisting the naira as a trading option.
A statement from the SEC in Abuja on Thursday, May 16, disclosed that KuCoin, a major Cryptocurrency exchange, has confirmed the removal of the naira as a fiat currency option for transactions.
The platform is currently “making the necessary adjustments to its technology to accommodate the delisting of the Naira as soon as practicable.”
This move by KuCoin reflects the broader government effort to address concerns about the impact of Peer to Peer (P2P) crypto trading on the value of the naira.
The delisting of the naira is intended to limit the ability to “manipulate the exchange rates against the Nigerian currency the Naira.”
Officials believe that P2P platforms have been used for speculative activities that have contributed to the naira’s depreciation.
By removing the naira as a trading option, the government hopes to “further strengthen the value of the naira.”
The ONSA previously issued directives calling for the delisting of the naira from crypto platforms.
The SEC, the government’s capital markets regulator, has also taken a proactive stance.
During a meeting with the Blockchain Industry Coordinating Committee of Nigeria (BICCoN), the SEC outlined its plans to delist the naira from P2P trading to “avoid the level of manipulation that is currently happening.”
Dr. Emomotimi Agama, Acting Director General of the SEC, expressed satisfaction with the “compliance with the Directives by the NSA” demonstrated by Cryptocurrency exchanges like KuCoin.
He emphasised the importance of “protecting what belongs to us” and warned those engaged in “sharp practices that undermine national interest” to “cease and desist.”
Dr. Agama reiterated the SEC’s commitment to working with the ONSA, the Economic and Financial Crimes Commission (EFCC), and other relevant agencies to “ensure that illegality is not allowed to thrive.”
The delisting of the naira from P2P platforms represents a significant development in the Nigerian Cryptocurrency landscape.
While the government aims to achieve greater stability in the foreign exchange market, the long-term impact of this policy remains to be seen.
The effectiveness of the delisting in curbing manipulation and the potential consequences for the Cryptocurrency industry in Nigeria are issues that will be closely monitored in the coming months.
