Crypto exchange KuCoin temporarily suspends Naira p2p
While the exact reasons behind the naira's depreciation are complex, KuCoin is likely attempting to pre-empt regulatory actions from the Nigerian authorities
To prevent facing charges like Binance, rival crypto exchange KuCoin has suspended all naira-based peer-to-peer trading to comply with Nigeria’s Securities and Exchange Commission (SEC).
According to a recent report, the centralized exchange informed its 33.4 million users that it would pause its P2P naira services and its Fast Buy service using a Naira card.
This move comes after the Nigerian Securities and Exchange Commission (SEC) urged crypto stakeholders to desist from Naira P2P trading, citing concerns about its impact on the value of the Nigerian naira.
This was followed by stricter regulations on peer-to-peer cryptocurrency trading by the Nigerian Security Adviser, who mandated banks and fintech companies to close accounts linked to crypto trading and notify law enforcement of such accounts.
In this endeavour, the Economic and Financial Crimes Commission (EFCC) also took action, shutting down hundreds of accounts believed to be involved in crypto trading.
Earlier this year, Binance, another major crypto exchange, faced accusations from Nigerian authorities of tax evasion, money laundering, and manipulating the naira's exchange rate through its P2P platform. These accusations resulted in the arrest of two Binance executives and the suspension of naira deposits and withdrawals on the platform. Binance ultimately exited the Nigerian market altogether.
While the exact reasons behind the naira's depreciation are complex, KuCoin is likely attempting to pre-empt similar actions from the Nigerian authorities who have recently cracked down on naira P2P trading.
Despite the strict restrictions implemented by Nigerian authorities to stabilize the Naira, the Naira has continued to weaken, trading currently at N1,530 per US dollar on the Foreign Exchange (FOREX) parallel market.
