SEC to Ban  Person-to-Person Cryptocurrency Trading to Protect the Naira

Securities and Exchange Commission (SEC) said that it will prohibit person-to-person (P2P) cryptocurrency trading in the Naira, aiming to safeguard its local currency from further depreciation and market manipulation.

This decision comes amidst concerns over the manipulation of the naira’s exchange rate by speculators operating within the P2P crypto trading sector.

Emomotimi Agama, director general, SEC, disclosed during a meeting with fintech professionals that new regulations targeted at crypto exchanges, digital asset custodians, and other sectors of the cryptocurrency industry would be introduced shortly.

The upcoming regulatory changes come amid growing concerns over the impact of cryptocurrency on the naira’s exchange rate.

Despite these developments, Agama expressed openness to dialogue with industry stakeholders.

The director general, SEC stressed on the importance of cooperation in implementing new regulations to safeguard the crypto space.

Agama’s proactive engagement aims to reassure stakeholders unsettled by recent events, including crackdowns on global cryptocurrency exchanges like Binance.

SEC move to ‘delist’ the local currency is part of broader efforts to regulate the crypto industry. Nigeria’s decision reflects a broader global debate about how to regulate cryptocurrencies effectively.

Finding the right balance between oversight and innovation will be key to shaping a healthy crypto ecosystem that benefits everyone. The aim is to stop people from manipulating the naira’s value.

Although this development may sound good, yet some are worried that it could limit access to cryptocurrencies for everyday Nigerians who rely on these platforms.

Accordingly, they believe that a balancing regulation and innovation is tricky, yet regulation is important to protect people and ensure fair markets.

They noted that it is also important not to stifle new ideas as cryptocurrencies offer new ways of doing things and can help people financially.

The challenge, they noted is to make rules that encourage this while also dealing with problems like fraud.