Global crypto exchange KuCoin has suspended Peer-to-Peer trading in Nigeria following the federal government directive.
The move comes three weeks after the Securities and Exchange Commission (SEC) ordered crypto platforms operating in the country to delist Naira from P2P trading in a bid to save the currency’s value.
The Acting Director General of the SEC, Dr. Emomotimi Agama, stressed that there was a need to clean up the virtual assets space from illegal trading activities and safeguard the integrity of the Nigerian capital market.
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He emphasized the Commission’s readiness to enforce the Investments and Securities Act of 2007 vigorously, ensuring that all market participants adhere to the established legal frameworks, despite the technological advances in digital assets.
In compliance with this, KuCoin via a blogpost announced its plan to temporarily suspend its P2P Naira services and Fast Buy service via Naira card.
Part of the blogpost reads,
“Starting from 2024-05-15, we will temporarily suspend all P2P Nigerian Naira (NGN) services and Fast Buy service via Naira cards. Ongoing orders will be completed normally, and all other services will remain available. Rest assured that your assets are safe at KuCoin. While we understand that this may require some adjustments to your trading preferences, we want to assure you that this decision is a step towards an even better trading experience for you. At KuCoin, we are dedicated to providing you with the best possible service, and your trust in our platform means the world to us.
“We truly appreciate your continued support on this remarkable journey. As we work tirelessly to enhance your trading experience, we are confident that we will overcome any challenges that come our way. During this temporary pause, we will be focusing on ensuring compliance and creating a more robust and secure environment for all our users. We are fully aware of the impacts caused, and we want to express our gratitude for your understanding and cooperation as we navigate through this change together.”
The crypto exchange further noted that it remains committed to resolving this matter swiftly and efficiently, adding that they are eagerly looking forward to resuming the P2P services and fast buy service via Naira cards in a fully compliant manner.
KuCoin becomes the third crypto platform to suspend its P2P function in Nigeria, coming after OKX and Binance disabled their P2P trading to Nigerian users.
Lately, the Nigerian government has intensified scrutiny on P2P cryptocurrency trading, to reduce the manipulation of the local currency in the foreign exchange market.
Recall that last year, the Nigerian government lifted a nearly 3-year-old ban on crypto transactions in the country. This saw the CBN roll-out guidelines that stressed the need for VASPs to get permission from the SEC to engage in crypto business.
However, the crypto ban took a twist earlier this year, which saw the government banning crypto platforms such as Binance in a bid to rein in currency speculation that had devalued the naira.
They noted that the recent surge in peer-to-peer (P2P) crypto trading has reportedly impacted the Naira’s exchange rate. Authorities blame crypto platforms for aiding currency speculations and fueling the rapid devaluation of the naira.
Recently, Nigeria’s National Security Adviser (NSA) classified cryptocurrency trading as a national security issue. According to crypto stakeholders, the naira’s delisting is expected to be temporary until a form of regulation for virtual asset providers is created.