Reports suggest that Nigeria, an economically significant country in West Africa, is poised to introduce a new prohibition concerning cryptocurrency. The proposed ban aims to prevent financial institutions from facilitating peer-to-peer (P2P) cryptocurrency transactions, following the classification of cryptocurrency trading as a national security concern by the Office of the National Security Adviser (NSA).
Anonymous sources indicate that three fintech startups, which facilitate P2P cryptocurrency transactions, have been instructed to cease these activities and report any such transactions to law enforcement agencies. This speculation arises shortly after the Central Bank of Nigeria (CBN) publicly denied a letter claiming to reverse a decision made in February 2021.
Recent reports suggest that the NSA, which has played a role in shaping Nigeria’s cryptocurrency policies, views cryptocurrency trading as a national security issue. Tosin Eniolorunda, CEO of fintech startup Moniepoint, suggests that this classification may signal the authorities’ intention to ban P2P cryptocurrency transactions.
Eniolorunda sheds light on the reasons behind the authorities’ desire to halt P2P transactions, citing concerns over a significant number of accounts involved in crypto trading. He mentions that accounts were blocked due to worries about the rapid opening of accounts by fintechs, prompting authorities to instruct a halt to account openings.
While no specific date has been announced for the ban’s implementation, sources suggest that its announcement is imminent.
May 2024, Cryptoniteuae
