{"id":77962,"date":"2024-05-03T11:55:36","date_gmt":"2024-05-03T15:55:36","guid":{"rendered":"https:\/\/coinscreed.com\/staging\/?p=77962"},"modified":"2024-05-03T11:55:38","modified_gmt":"2024-05-03T15:55:38","slug":"nigeria-labels-crypto-a-national-security-concern-signals-p2p-ban","status":"publish","type":"post","link":"https:\/\/coinscreed.com\/staging\/nigeria-labels-crypto-a-national-security-concern-signals-p2p-ban\/","title":{"rendered":"Nigeria Labels Crypto a National Security Concern, Signals P2P Ban"},"content":{"rendered":"\n

Three Nigerian fintech startups to block and report crypto transaction<\/a>s due to national security concerns, hinting at an impending ban on peer-to-peer trading<\/p>\n\n\n\n

\"Nigeria
Nigeria Labels Crypto a National Security Concern, Signals P2P Ban<\/figcaption><\/figure>\n\n\n\n

As a result of the National Security Adviser (NSA) of Nigeria designating cryptocurrency trading as a matter of national security, a minimum of three Nigerian fintech startups<\/a>\u2014Moniepoint, Paga, and Palmpay\u2014have resolved to impede customer access to cryptocurrency and subsequently report such transactions to law enforcement.\u00a0<\/p>\n\n\n\n

This designation indicates that a new cryptocurrency regulation prohibiting peer-to-peer trading of cryptocurrencies is in the works, according to Moniepoint CEO Tosin Eniolorunda. <\/p>\n\n\n\n

Following the initial easing of the stance on cryptocurrencies by the Bola Tinubu administration, implementing the ban would signify a significant regulatory transition.<\/p>\n\n\n\n

The Central Bank lifted a two-year prohibition on cryptocurrency transactions in December 2023, and at least three cryptocurrency exchanges were in license negotiations with the Securities and Exchange Commission (SEC).\u00a0<\/p>\n\n\n\n

However, initial gains have since been reversed, and authorities have attributed a volatile FX regime to cryptocurrency speculators for the past two months.<\/p>\n\n\n\n

The Central Bank's prohibition on peer-to-peer trading is predicated on the notion that cryptocurrency merchants employ this mode of exchange to manipulate the naira through a pump-and-dump tactic. Governor of the Central Bank Olayemi Cardoso asserted in February 2024 that Binance had facilitated untraceable transactions worth $26 billion. <\/p>\n\n\n\n

Involved in peer-to-peer transactions, it prompted a crackdown on the global exchange<\/a> Binance and the suspension of more than one thousand bank accounts. However, the government has gone even further.\u00a0<\/p>\n\n\n\n

Four notable fintechs were instructed to cease opening new customer accounts last week. It was unknown whether the directive originated from the NSA or the Economic and Financial Crimes Commission. An NSA spokesperson denied any involvement in the incident. <\/p>\n\n\n\n

The CEO of Moniepoint, Tosin Eniolorunda, confirmed on Thursday that the NSA had issued the order to suspend new customer registrations. <\/p>\n\n\n\n

\n

\u201cCustomers can easily open Tier 3 accounts on fintech platforms in seconds,\u201d <\/p>\nhe said at the TMT Business Law conference in Lagos.<\/cite><\/blockquote>\n\n\n\n

\n

\u201cThe NSA found a lot of accounts [that were involved in crypto trading] and blocked the accounts. They were worried that fintechs are rapid [in opening accounts] and told us to stop onboarding.\u201d<\/p>\nAn NSA spokesperson declined to provide further comment.<\/cite><\/blockquote>\n\n\n\n

These simple-to-open accounts, enabled by lax regulations intended to promote financial inclusion, have come under increased scrutiny in the past year. Conventional financial institutions asserted that these accounts frequently served as conduits for illicit funds acquired by evil actors. <\/p>\n\n\n\n

The regulations were modified by the Central Bank in December 2023, thereby imposing a deadline of March 2024 on fintech businesses\r\n \r\n \r\n \r\n <\/g>\r\n \r\n \r\n \r\n <\/clipPath>\r\n <\/defs><\/svg><\/span><\/a> to submit identification requests for all account classes.\u00a0\u00a0<\/p>\n","protected":false},"excerpt":{"rendered":"

Three Nigerian fintech startups to block and report crypto transactions due to national security concerns, hinting at an impending ban on peer-to-peer trading As a result of the National Security Adviser (NSA) of Nigeria designating cryptocurrency trading as a matter of national security, a minimum of three Nigerian fintech startups\u2014Moniepoint, Paga, and Palmpay\u2014have resolved to […]<\/p>\n","protected":false},"author":36,"featured_media":77968,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[21],"tags":[5495,17256,350,4093],"class_list":["post-77962","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","tag-crypto-2","tag-security-2","tag-nigeria","tag-p2p"],"jetpack_featured_media_url":"https:\/\/coinscreed.com\/staging\/wp-content\/uploads\/2024\/05\/Bitcoin-Nigeria-800x500a-1.jpg","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/posts\/77962","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/users\/36"}],"replies":[{"embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/comments?post=77962"}],"version-history":[{"count":0,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/posts\/77962\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/media\/77968"}],"wp:attachment":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/media?parent=77962"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/categories?post=77962"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/tags?post=77962"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}