The Federal Government is contemplating strict measures regarding the cryptocurrency market following discussions with the Securities and Exchange Commission (SEC) and digital asset operators, scheduled for Monday.
The volume of cryptocurrency transactions in Nigeria surged by nine percent year-over-year, reaching $56.7 billion between July 2022 and June 2023, as per the 2023 Geography of Cryptocurrency Report by Chainalysis, a US-based blockchain analysis firm.
The SEC’s forthcoming actions indicate the government’s broader initiative to enhance regulatory oversight in the cryptocurrency realm, aiming to address concerns regarding illegal activities and the manipulation of the naira exchange rate.
Recently, the Central Bank of Nigeria halted major fintech firms from onboarding new customers as part of an ongoing audit of their Know-Your-Customer process.
In response, leading fintech firms like Opay and PalmPay cautioned customers against cryptocurrency trading on their platforms, threatening to block accounts engaging in such activities.
This move sparked criticism, particularly from the 33.4 million individuals actively involved in cryptocurrency trading, many of whom depend on it as their primary income source.
However, insights suggest that during the upcoming meeting, the government might announce a temporary suspension of peer-to-peer (P2P) crypto trading to formulate comprehensive regulations for effective oversight.
Alternative sources hint at the possibility of the government engaging crypto stakeholders to establish new regulations tailored to better govern the cryptocurrency space.