Following the Federal Government of Nigeria’s resolution to clamp down on all crypto-related activities through drastic measures, another action has been taken to limit the number of cryptocurrency traders in the country.
The latest government action is a meeting between Nigeria’s Securities and Exchange Commission (SEC) and all cryptocurrency heads to halt peer-to-peer trading.
Investopedia says, “With currencies, P2P refers to the exchange of cryptocurrencies, which were created to enable anonymous P2P transactions that don’t require processing by a financial institution. This required encryption and blockchains to enable two parties to safely conduct transactions without needing a trusted third party.”
Following the directives of Nigeria’s Nigerian Securities and Exchange Commission (SEC), Kucoin has decided to halt all peer-to-peer trading involving the Nigerian currency, the Naira. Kucoin’s This decision is key to maintaining a good relationship with Nigeria’s SEC and the government.
Recall that the Federal Government of Nigeria recently clamped down on all of Binance’s operations in the country and also hit the cryptocurrency company with numerous charges over claims of inflating the country’s currency.
The decision to halt Kucoin’s peer-to-peer trading is part of a long line of stringent actions that have been taken by the government and the Central Bank of Nigeria (CBN) to ensure that the Naira keeps appreciating against the US dollar, which includes banning all bank accounts related to crypto trading, giving directives to Fintech banks to stop accepting new customers and many more, which has however not worked yet, as the Naira is now valued as the worst currency in the world.
The government plans to clamp down on all currency speculators in the country, who they believe are responsible for the constant inflation in the value of the Naira against the US Dollar. This has not mainly worked, as some months ago, the Naira appreciated well against the US Dollars. Still, it has crashed terribly, which has led the government to intensify efforts to stop all cryptocurrency traders.
