The Securities and Exchange Commission, on behalf of the Federal Government, is planning to remove the naira from all peer-to-peer crypto platforms to combat exchange rate manipulation and illegal dollar trading.
This decision follows the government's recent initiatives to regulate Nigeria's $57 billion crypto market.
The newly appointed Director-General of the Commission, Emomotimi Agama, revealed this plan during a meeting with representatives from the Nigerian blockchain industry, which was coordinated by the Blockchain Industry Coordinating Committee of Nigeria.
Agama verified that the government is in the process of creating a new set of rules to regulate the cryptocurrency sector.
It has been alleged that operators in the cryptocurrency space have been using P2P platforms to manipulate the naira and the exchange rate.
"This is a necessary step to protect this sector; removing the naira from P2P platforms is essential to prevent the current level of manipulation. I urge your collaboration as we implement regulations in the near future," stated the SEC DG to members of the local cryptocurrency community.
Agama’s announcement came barely a week after the Central Bank of Nigeria instructed payment service banks to caution their customers against engaging in crypto transactions.
