The Nigerian government, through the Securities and Exchange Commission (SEC), is intensifying its regulatory efforts on the crypto market by planning to delist the naira from peer-to-peer (P2P) crypto platforms. This move aims to curb the manipulation of the exchange rate and combat dollar racketeering activities.
Emomotimi Agama, the newly appointed Director-General of the SEC, unveiled this plan during a discussion with key figures in the Nigerian blockchain industry. The meeting, organized by the Blockchain Industry Coordinating Committee of Nigeria (BICCoN), provided a platform for the government to share its vision for a regulated crypto environment.
The decision aligns with the government’s broader strategy to manage the crypto market, currently estimated to be worth $57 billion in Nigeria. Recent governmental actions, including directives from the Central Bank of Nigeria to payment service banks advising caution on crypto transactions, underscore the urgency of this regulatory push.
During the meeting, Agama emphasized the necessity of the delisting to prevent the extensive manipulation that is reportedly rampant on P2P platforms. He appealed for the cooperation of the crypto community in implementing the forthcoming regulations, which are expected to be rolled out shortly.
Several local exchanges, such as OKX and Bitbarter, along with members of the Stakeholders in Blockchain Technology Association of Nigeria (SiBAN), have already ceased naira transactions in support of the government’s efforts. Earlier this year, SiBAN sought to collaborate with the government to develop effective regulation, proposing the Virtual Assets Service Providers Code of Conduct in 2022.
In his appeal to the community, Agama urged industry participants to help identify and expose those involved in undermining the national currency through manipulative practices. He stressed the importance of patriotism and the role of the crypto community in shaping the future of Nigeria’s fintech sector. Agama also outlined his vision for a digital asset regulatory framework that supports innovation while protecting economic interests.
The SEC’s proactive stance comes as Nigeria’s crypto transaction volume saw a 9% increase year-over-year, reaching $56.7 billion between July 2022 and June 2023, according to Chainalysis.
Moving forward, the SEC, alongside industry stakeholders like the Fintech Association of Nigeria and BICCoN, plans to establish a working group to address the challenges within the crypto space and promote market advancement. Dr. Babatunde Obrimah, chairman of the Fintech Association, expressed strong support for the SEC’s initiatives and committed to collaborating with Agama to ensure a clean and viable virtual ecosystem.
