SEC unveils plans to delist Naira from P2P platforms in bid to halt manipulations via crypto trading

The Securities and Exchange Commission (SEC) has announced intentions to remove the naira from all peer-to-peer (P2P) platforms in a bid to address concerns surrounding cryptocurrency trading activities in Nigeria.

The decision was revealed by SEC’s acting director general, Emomotimi Agama, during a virtual meeting with the Blockchain Industry Coordinating Committee of Nigeria (BICCoN), a collective representing major blockchain and cryptocurrency associations within the country.

P2P platforms facilitate direct financial transactions between two parties without the involvement of traditional financial institutions.

Agama cited the need to combat perceived manipulation within the cryptocurrency space as a primary reason for the delisting of the naira from these platforms.

According to Agama, the SEC aims to crack down on illegal trading activities in the virtual asset space, emphasizing the importance of upholding the integrity of the capital market and protecting investor interests.

He urged stakeholders to collaborate in finding solutions to the challenges posed by cryptocurrency trading while striking a balance between promoting innovation and safeguarding national economic interests.

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Agama reassured the industry of SEC’s commitment to introducing regulations to guide activities in the virtual asset space, including fast-tracking license approvals for individuals or institutions operating within the sector.

He also disclosed ongoing efforts to establish a regulatory framework specifically tailored for digital assets, incorporating input from various stakeholders.

The proposed regulatory guidelines will cover a wide range of activities within the cryptocurrency ecosystem, including wallet providers, digital asset custodians, cryptocurrency crowdfunding, and exchange platform providers.

Agama emphasized the SEC’s dedication to inclusivity and proper regulation to foster economic progress and position Nigeria as a leading force in digital asset innovation in Africa.

In response to challenges facing the crypto space, BICCoN has advocated the formation of a working group to address key issues and propel the market forward.

Meanwhile, Agama reiterated SEC’s stance against activities undermining national interests, stressing the regulator’s authority to regulate all capital market activities in line with established laws.

The move by the SEC signals ongoing efforts by regulatory authorities to address concerns surrounding cryptocurrency trading while fostering a conducive environment for innovation and economic growth in Nigeria’s digital asset landscape.