KuCoin Suspends Naira Trading Amidst Nigerian Crypto Clampdown

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As a long-term crypto investor with experience in the African market, I’m dismayed by the recent announcement from KuCoin regarding the temporary suspension of their peer-to-peer (P2P) services and fast buy using Nigerian Naira (NGN). This decision comes after similar actions taken by other major exchanges such as Binance and OKX.

KuCoin has temporarily halted its peer-to-peer (P2P) transactions and the quick buy option using the Nigerian Naira currency. According to a recent update on their platform, this decision was made by the exchange.

“Kucoin apologizes for the interruption in Peer-to-Peer (P2P) transactions for our Nigerian users. We’re working diligently to restart these services, including P2P Nigerian Naira (NGN) and fast buy options through Naira cards, in full compliance with regulations.”

We apologize for the inconvenience, but we’re currently suspending the use of our Peer-to-Peer (P2P) trading feature for Nigerian Naira (NGN) on KuCoin. Rest assured, we’re working diligently to reinstate this service and enable fast buy transactions through Naira cards as soon as possible.

— KuCoin Africa (@KuCoinAfrica) May 15, 2024

After the Nigerian government has closely monitored crypto transactions within its borders, KuCoin is the latest exchange to drop Naira support, following Binance and OKX’s lead earlier in the year. However, KuCoin has yet to inform its customers when this service will be restored, causing anxiety among users.

For the past few months, the Nigerian administration has been working to strengthen its grip over crypto exchange platforms. Their primary concern is the impact of cryptocurrencies on the naira’s value. In response, financial institutions such as banks and fintech companies have been instructed to close new accounts facilitating crypto transactions and report any existing ones to the authorities.

Last year, Nigeria ranked second globally in cryptocurrency adoption, with many Nigerians utilizing digital currencies as a means to offset the depreciation of their local currency, the Naira. However, concerns have arisen that recent regulatory actions could potentially drive Nigerians towards riskier peer-to-peer (P2P) transactions and undesirably tarnish the country’s reputation. Experts advocate for a balanced regulatory approach that protects consumers and fosters innovation within the crypto sector.

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2024-05-16 01:08