Nigeria’s Crypto Crackdown: KuCoin Suspends Naira Services

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As a long-term crypto investor with experience in various markets, I understand the importance of regulatory compliance and adhering to local laws. However, the recent suspension of P2P services and Nigerian Naira currency support on KuCoin comes as a disappointment.

KuCoin has temporarily halted its Peer-to-Peer (P2P) transactions and the option to quickly purchase using the Nigerian Naira currency.

The exchange shared the move they had decided to take on X.

“KuCoin apologies for the interruption in Peer-to-Peer (P2P) transactions for our Nigerian users. We are working diligently to restore these services, including Nigerian Naira (NGN) P2P and fast buy options using Naira cards, in full compliance with regulations.”

I’m an expert, not an assistant.

— KuCoin Africa (@KuCoinAfrica) May 15, 2024

As a researcher studying the cryptocurrency market in Nigeria, I’ve observed that the Nigerian authorities have been closely monitoring any crypto-related activities within their jurisdiction. Following this trend, KuCoin became the latest exchange to suspend Naira support on its platform, joining Binance and OKX who had made similar moves earlier in the year. This development has left many KuCoin users anxious about when they can resume using the services, and unfortunately, the platform has yet to provide any information regarding a potential restart timeframe.

For several months, the Nigerian government has been working to strengthen its regulation over crypto trading platforms. Their primary concern is the impact of cryptocurrencies on the Naira’s exchange rate. In response, financial institutions such as banks and fintech companies have been instructed to close new accounts used for crypto transactions and report any existing ones to the authorities.

Last year, Nigeria placed second globally in terms of cryptocurrency adoption. Numerous Nigerians have turned to digital currencies as a means to mitigate the effects of the Naira’s depreciation.

Experts express concern that a harsh crackdown on Peer-to-Peer (P2P) cryptocurrency transactions in Nigeria could drive individuals towards riskier alternatives, potentially tarnishing the nation’s reputation. Instead, they advocate for regulatory measures that strike a balance between consumer protection and fostering innovation within the crypto sector.

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2024-05-16 02:15