KuCoin temporarily halts peer-to-peer trading in Nigeria due to regulatory uncertainties
In a significant move, global cryptocurrency platform KuCoin has suspended all Naira-based P2P trading and fast buy services due to increased regulatory scrutiny by Nigerian authorities. This decision follows similar restrictions imposed on Binance earlier in 2024, when Nigerian regulators blocked access to crypto exchanges and suspended Naira fiat services on these platforms.
The Nigerian government's actions are driven by concerns about the manipulation of the naira's value, particularly through P2P trading platforms. The authorities believe that bad actors are exploiting these platforms to influence exchange rates.
The regulatory environment for cryptocurrency in Nigeria has been fluctuating. In 2023, the Central Bank of Nigeria briefly reversed bans, allowing freer crypto trading. However, intense regulatory pressure returned in early 2024, with local telecoms blocking crypto websites, Binance suspending Naira deposits and withdrawals, and KuCoin halting Naira P2P trades, citing "compliance" as the reason.
The crackdown has been severe, with Binance facing a $10 billion fine and allegations of bribery demands by Nigerian officials linked to regulatory settlements, though these claims are disputed by Nigerian authorities. Two Binance employees were arrested, one of whom remains in custody.
Despite these challenges, Nigerians can still technically access crypto platforms via VPNs and perform crypto-to-crypto trades. However, they face severe restrictions on fiat-to-crypto onramps involving the Naira. The regulatory stance aims to control risks associated with cryptocurrency activities without completely banning all crypto ownership or trading.
The P2P suspension on KuCoin is in response to recent comments by the acting SEC chief suggesting a potential P2P ban. The company is working to comply with local regulations during the naira P2P suspension. Ongoing orders on KuCoin will be completed during the P2P suspension. All other services on KuCoin will remain available during this time.
The value of the naira has dropped by more than 60% in the past year, and the Nigerian government is targeting cryptocurrency platforms that offer naira P2P services due to these concerns. The "fast buy" feature on KuCoin, which allows users to buy cryptocurrency directly with their Naira debit or credit cards, is also being suspended as part of the crackdown.
This reflects an ongoing tense regulatory environment centered on preventing misuse of the forex market and stabilizing the Naira, with strict enforcement actions causing major exchanges to suspend local Naira services. The crackdown on cryptocurrency in Nigeria started with the arrest of Binance employees and the suspension of naira P2P services by Binance.
- The regulatory crackdown on cryptocurrency platforms in Nigeria, initiated with the arrest of Binance employees and the suspension of naira P2P services by Binance, is intended to prevent manipulation of the naira's value and stabilize the forex market.
- As a result of regularity pressure, global cryptocurrency platform KuCoin has suspended all Naira-based P2P trading and fast buy services, citing compliance as the reason.
- The ongoing regulatory environment in Nigeria is marked by fluctuations, with the authorities aiming to control risks associated with cryptocurrency activities without completely banning all crypto ownership or trading.
- Despite these restrictions, Nigerians can still access crypto platforms via VPNs and perform crypto-to-crypto trades, but they face severe restrictions on fiat-to-crypto onramps involving the Naira.
- The regulatory stance towards digital assets, such as blockchain technology and crypto, in Africa's largest economy, Nigeria, has attracted general-news headlines due to the intense scrutiny and enforcement actions taken against major players in the industry, like Binance and KuCoin.
- The recent comments by the acting SEC chief suggest a potential P2P ban, which could further tighten the regulatory noose around cryptocurrency platforms offering naira P2P services in Nigeria.
- In the face of regulatory pressure, crypto businesses operating in Nigeria, including KuCoin, are working to comply with local regulations and maintain availability of their other services during the suspension of services related to Naira trading.
