Nigeria is set to introduce further regulations aimed at curbing unlawful transactions in digital currencies

Nigeria is poised to introduce new regulations shortly to curb illicit digital asset trading and mandate registration for those trading in such assets, as stated by the head of the Securities and Exchange Commission (SEC).

The SEC’s director general, Emomotimi Agama, informed key blockchain and cryptocurrency groups in Nigeria that it is necessary to remove the naira from peer-to-peer (P2P) trading platforms to prevent market manipulation.

These remarks were made against the backdrop of the central bank’s announcement of new fees on domestic money transfers as part of cybersecurity measures.
Agama appealed for cooperation from the associations, emphasizing the imminent introduction of regulations designed to govern these sectors.

The clampdown on cryptocurrencies has been attributed to the weakening of the naira, which has reached all-time lows amid a scarcity of dollars, even as cryptocurrency transactions have surged in Nigeria.
In an effort to balance between a complete prohibition and unregulated usage of crypto assets, the SEC unveiled a framework for digital assets in 2022.

Nigeria, a prominent hub for cryptocurrency trading, has seen a surge in usage, particularly among its tech-savvy youth. The rampant dollar shortages have made it increasingly challenging for Nigerians to make international payments.
Agama highlighted the need for “collective action and dialogue within our financial market ecosystem” due to the recent concerns about the impact of crypto P2P trading on the naira’s value against the dollar.

Following Nigeria’s stringent measures against cryptocurrency exchanges, Binance, the largest global crypto exchange, announced in March that it would cease all naira transactions and trading.

Subsequently, Nigeria brought charges against Binance and two of its executives for tax evasion and money laundering, which are currently being contested by the company.
Agama noted that the guidelines for digital asset trading are being refined to ensure robust regulation, covering the entire spectrum of cryptocurrency-related activities, from wallet services to trading platforms and brokerage firms.