📰 Table Of Contents
- 1 Cryptowire: Crypto Companies in Nigeria Suspend USDT and USDC Purchases with Naira
- 1.1 Regulatory Focus on Crypto Platforms
- 1.2 Decision by Crypto Founders
- 1.3 Exchanges Ordered to Pause Naira Purchases
- 1.4 Regulatory Scrutiny on Crypto Exchanges
- 1.5 Allegations and Concerns
- 1.6 Recent Developments and Cautious Approach
- 1.7 Binance’s Compliance Measures
- 1.8 Nigeria’s Crypto Awareness and Investment Drive
Cryptowire: Crypto Companies in Nigeria Suspend USDT and USDC Purchases with Naira
Several crypto companies in Nigeria have made the decision to disallow users from buying the Tether (USDT) and USD Coin (USDC) stablecoins with Naira in light of renewed scrutiny from the Central Bank of Nigeria (CBN).
Regulatory Focus on Crypto Platforms
The move comes as regulators intensify their focus on crypto platforms, citing concerns that they facilitate speculative trading and market manipulation.
Decision by Crypto Founders
The decision was reportedly made during a meeting of crypto founders, where participating individuals agreed to suspend the trading of these stablecoins on their platforms, sources familiar with the matter told TechCabal.
Exchanges Ordered to Pause Naira Purchases
While details of the meeting have not been disclosed, it is believed that at least two crypto exchanges have already informed their Nigerian customers about the new development. Notifications sent to customers explicitly stated that the buying and selling of USDT and USDC with Naira would no longer be possible.
Regulatory Scrutiny on Crypto Exchanges
Crypto exchanges have been increasingly facing regulatory scrutiny, with recent reports highlighting difficulties in accessing the websites of popular platforms such as Coinbase, Quidax, and Binance.
Allegations and Concerns
The Central Bank governor Olayemi Cardoso has claimed that an estimated $26 billion had passed through Binance Nigeria from unidentified sources and users, further intensifying regulatory concerns. The Digital Currency Coalition alleged that speculative trading on the platform played a significant role in the devaluation of the Naira against USDT by 113.1% since February 2023.
Recent Developments and Cautious Approach
Amidst these developments, crypto exchanges in Nigeria are proceeding cautiously. Some employees have reported receiving instructions not to wear company-branded apparel or attend events related to platforms like Binance.
Binance’s Compliance Measures
Binance has recently introduced a price cap for Tether (USDT) tokens on its peer-to-peer (P2P) platform in Nigeria in order to comply with local regulatory requirements. Traders on Binance’s P2P platform are currently restricted from selling USDT above the set cap of 1,802 naira per USDT.
Nigeria’s Crypto Awareness and Investment Drive
A recent survey has revealed that Nigeria is the most crypto-savvy nation ahead of the United States and European countries. Nigeria’s crypto awareness stands at 99% as the country leads in digital asset knowledge and perceived investment drive.