SEC tightens noose around crypto operations, to delist naira from P2P

In its continued crackdown against cryptocurrency platforms and a bid to checkmate the manipulation of the local currency value in the foreign exchange market, the Securities and Exchange Commission (SEC) is set to delist the naira from all Peer-to-Peer platforms.

A peer-to-peer (P2P) service is a decentralized platform whereby two individuals interact directly with each other, without intermediation by a third party. Instead, the buyer and the seller transact directly with each other via the P2P service.

There have been reports that traders have been taking advantage of this feature to manipulate the naira.

Emomotimi Agama, SEC’s Director General, disclosed this during an interactive session with the Nigerian Blockchain Industry. This is expected to be part of a couple of regulations that will be rolled out in the coming days.

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He said: “That is one of the things that must be done to save this space. The delisting of the naira from the P2P platforms to avoid the level of manipulation that is currently happening. I want your cooperation in dealing with this as we roll out regulations in the coming days.”

Agama, who made efforts to reassure the ecosystem’s stakeholders at the meeting, declared that SEC was ready to work with everyone in the space. He noted that the commission is updating its guidelines in the hope of ensuring best practices.

The SEC DG decried how some market players were manipulating the value of the naira and explained that it is why the commission is “Seeking collaboration and help in making sure that the crypto environment is respected globally.

Agama’s declaration is coming off the heels of a recent directive from the Central Bank of Nigeria to fintechs, which mandated fintechs to warn their customers against engaging in crypto transactions.