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Kucoin halts naira P2P trading on its platform citing compliance

Kucoin has joined the list of Crypto Exchanges suspending Naira Peer to Peer trading on their platforms as Nigerian authorities tighten the noose on Crypto entities both local and foreign operating in the country.

The move comes three weeks after the country’s Securities and Exchange Commission (SEC) met with major crypto stakeholders in the Nigerian industry and urged them to desist from Naira P2P trading as Nigerian authorities battle with the current unstable nature of the Naira.

According to CryptoNews, Kucoin notified its users on Wednesday via a blog post of its decision to temporarily suspend its P2P naira services and Fast Buy service via Naira card citing ongoing efforts to enhance their services as the motive behind the decision.

However, experts believe the crypto exchange decision is a move to avoid running into a hitch with the Nigerian government which has been very critical of Naira P2P trading recently.

The Office of the Security Adviser in Nigeria has intensified its scrutiny of Naira P2P cryptocurrency trading adding to the overall suspicious outlook the Nigerian government has on Cryptocurrency as a whole linking it to illegal activities like money laundering and tax evasion.

Fintechs and banks have been instructed to close bank accounts associated with trading and report such accounts to the authorities.

The Economic and Financial Crimes Commission (EFCC) has also taken action by blocking thousands of accounts involved in crypto trading.

Emomotimi Agama, the Nigerian SEC Chief accused crypto P2P traders of manipulating the naira and being responsible for the depreciation of the naira during a May 7 meeting with industry stakeholders.

He expressed his concerns about the direct impact P2P trading has on the exchange rate of the Naira.

Despite the stiff measures put in place by Nigerian authorities the Naira has continued to depreciate and has hit a new low of N1,520 per Dollar at the Foreign Exchange (FOREX) parallel market as of Monday.

Kucoin joins Binance in its decision to delist naira P2P trading on its platform following the latter pending case with Nigerian authorities in court.

What to know 

  • Nigerian authorities are clamping down on Crypto entities in the country as it looks to rescue the depreciating value of its local currency. The foremost case of this attempt is the ongoing spat with Binance Limited, the world’s largest Crypto-currency exchange accusing it of tax evasion and money laundering.
  • Nigeria’s decision to tackle crypto entities is very unpopular among its young generation which makes the bulk of crypto users in the country. Crypto amongst this demographic is seen as a means of investment and even employment for those working with crypto firms.
  • USDT, a stablecoin pegged to the value of the US dollar is a very common means of payment for remote workers working with foreign companies. This class of workers often patronize Naira peer-to-peer trading to convert their USDT to Naira.

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