Nigeria's Crypto Conundrum: Seeking Clarity Amidst Regulatory Uncertainty

Jun 2, 2024

Nigeria's cryptocurrency industry has been a topic of uncertainty and concern over the past year, particularly with the administration's actions against it. Despite President Bola Tinubu's initial pledge to legalize crypto and blockchain technology to bolster the economy, recent developments have left stakeholders seeking clarity. The crackdown on peer-to-peer trading, the arrest of a Binance executive, and accusations of currency manipulation have dampened optimism within the industry. Although the Nigerian Securities Exchange Commission (SEC) introduced regulations for digital assets in May 2023, aiming for a balanced approach, subsequent actions, such as lifting the ban on banks serving crypto firms while maintaining restrictions on their ability to trade or hold virtual assets, have left the sector in limbo. Now, the government is reportedly preparing to introduce further regulations, potentially banning P2P cryptocurrency exchanges using the national currency, the Nigerian naira, adding to the uncertainty surrounding the industry's future.