Moniepoint and OPay’s moves mark the latest episode in Nigeria’s clampdown on peer-to-peer crypto trading, in an apparent push to stabilize the naira that has weakened significantly since President Bola Tinubu took office a year ago. Nigerian officials have blamed crypto exchanges for encouraging inflated demand for the dollar against the naira.
With peer-to-peer trading, individuals negotiate transactions on crypto exchanges but use bank accounts to make payments. But a clampdown on the feature has seen Nigerian authorities face off with Binance in particular. The company’s trading app and website are not accessible in Nigeria and law enforcement agents arrested two of its executives who visited Nigeria in February. One of them has escaped while the other, a former US tax agent Tigran Gambaryan who leads Binance’s financial compliance division, remains detained in Nigeria. He is facing charges including tax evasion and money laundering, with a court hearing slated for later this month.
In December, the CBN had seemed poised to welcome crypto trading. It lifted a 2021 ban imposed by the bank’s past leadership and indicated it would issue licenses for trading virtual assets. But no licenses have been issued yet, with a ban of some sort looking more likely instead.
Banks and fintechs may yet find it challenging to spot peer-to-peer crypto trades, since people who trade crypto are careful to not disclose the nature of their transactions. But “our work is to monitor suspicious transactions and report them to law enforcement,” Didi Uwemakpan, a spokesperson for Moniepoint, told Semafor Africa.
FAQs
The Central Bank of Nigeria (CBN) has lifted its ban on digital currency transactions.
Is cryptocurrency legal in Nigeria now? ›
Central Bank of Nigeria (CBN)
Given that there is no legislation prohibiting cryptocurrency, the CBN's approach to regulating it has been in the form of directives or guidance to its regulated entities, including banks and other financial institutions.
How much can I use to start crypto trading in Nigeria? ›
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Crypto is the future of money and you can own a piece with less than N500. Sign up on Quidax for free to buy Crypto today.
Is P2P still working in Nigeria? ›
Binance ultimately discontinued its peer-to-peer feature for Nigerian users. Recently, four fintech startups operating in the country have been directed to block accounts of customers engaging in cryptocurrency transactions and report the transactions to law enforcement agencies.
Is crypto legal in Nigeria in 2024? ›
There have never been any specific laws stopping individuals from using cryptocurrency. Nigeria has one of the highest crypto usages in the world, and the market grew a further 9% between 2022 and 2023, and the growth is expected to continue for 2024.
How many Nigerians own crypto? ›
How many cryptocurrencies owners are there in Nigeria? It is estimated that over 22 million people, 10.3% of Nigeria's total population, currently own cryptocurrency.
What happened to crypto currency in Nigeria? ›
In February 2021, the central bank prohibited banks and other financial institutions from dealing in or facilitating transactions in crypto assets, citing money laundering and terrorism financing risks. But that did not dampen Nigerians' appetite for crypto.
Can I buy crypto from Nigeria? ›
In Nigeria, Crypto assets can be bought with Naira via Yellow card. The feature offers the users the option of buying crypto via Bank transfer. It is to be noted that Yellow Card's wallet feature in Nigeria is limited to only Bitcoin, USDT, and PYUSD.
Which crypto exchanges are banned in Nigeria? ›
The Nigerian government took action Tuesday, blocking the websites of major crypto platforms including Binance, Forextime, OctaFX, Coinbase, Kraken, FXTM, and others. The world's largest crypto exchange Binance confirmed its website is inaccessible in Nigeria though its app remains functional for some users.
How much is $1 bitcoin in naira? ›
Ifeanyi Ezenwaogene ($12 Million)
Currently recognized as the wealthiest Nigerian crypto trader, with an estimated net worth of approximately $12 million, he was born on December 6, 1994, making him 28 years old.
Can I invest 5000 naira in bitcoin? ›
For newbies in the crypto community, you may want to know that you can purchase a fraction of a single Bitcoin for as little as 1,000 Naira to 5,000 Naira. In fact, some deals can even go for less than 1,000 Naira. This deal is called a 'satoshi', which means a hundred millionth of one Bitcoin, or just 0.00000001 BTC.
Is Bitcoin still illegal in Nigeria? ›
Is crypto allowed in Nigeria? Yes. The government lifted its ban on crypto in December 2023.
Did Nigeria ban P2P? ›
Nigeria vowed to ban person-to-person cryptocurrency trading in the naira, taking its latest step to corral an industry which the West African nation blames for harming the battered local currency.
Which wallet has P2P in Nigeria? ›
Remitano is the most frequently used peer-to-peer exchange in Nigeria. It provides an escrowed p2p platform that connects buyers and sellers to deal directly with themselves. Remitano supports cryptos which include Bitcoin (BTC), Litecoin (LTC), Ethereum (ETH), Bitcoin Cash (BCH), Ripple (XRP), and Tether (USDT).
Did Nigeria slap strict rules on banks after lifting crypto ban? ›
Nigeria Slaps Strict Rules on Banks After Lifting Crypto Ban
The rules, published on the central bank's website on Tuesday, flesh out the regulator's decision last month to lift its prohibition on banks operating accounts for crypto service providers.
What is happening with Binance in Nigeria? ›
Binance, the biggest platform for exchanging crypto currency, is facing trouble in Nigeria. The online service is among one of the most popular ways for Nigerians to trade in digital currency. The company and two of its executives are expected to appear in court on charges of money laundering and tax evasion.
Is Binance banned in Nigeria? ›
Last year the Nigerian Securities and Exchange Commission (SEC) declared that “Binance Nigeria is neither registered nor regulated by the Commission and its operations in Nigeria and are therefore illegal. Any member of the investing public dealing with the entity is doing so at his/her own risk.”
