The global crypto exchange Kucoin has announced the suspension of all naira-based peer-to-peer trading.
This comes three weeks following a meeting between Nigeria’s Securities and Exchange Commission (SEC) and blockchain industry stakeholders, wherein they were urged to cease peer-to-peer trading.
In a notification to users, Kucoin stated, “As part of ongoing efforts to enhance our services, Kucoin will temporarily suspend all p2p Naira services and Fast Buy service via Naira card.”
While Binance, another global crypto exchange, faces charges from the federal government, Kucoin has largely avoided attention thus far. With its decision to halt p2p trading, it aims to maintain this low profile.
In recent weeks, Nigeria’s National Security Adviser’s office has intensified scrutiny of p2p crypto trading. Fintechs and banks have been instructed to close accounts linked to trading and report them to authorities. Additionally, the Economic and Financial Crimes Commission has blocked thousands of accounts engaged in crypto trading.
Emomotimi Agama, the SEC DG, attributed the decline of the naira to cryptocurrency traders during a May 7 event, stating, “What is very critical and which has brought about this meeting is the concerns regarding crypto P2P traders and their effect on the exchange rate.”
Although the naira experienced a surge in April, becoming the best-performing currency, it has since relinquished those gains. On May 14, the USD exchanged for ₦1520, marking a significant decline and a stark reminder of the volatility that led to the Binance ban in February 2024.
Reports indicate that the EFCC has resumed the arrest of street traders this week, enforcing the ban imposed in February.
Despite these stringent measures, there appears to be no relief in sight for the naira. It remains uncertain whether authorities will proceed with plans to ban p2p trading and what form such a ban may take.
