Central Bank of Nigeria Denies P2P Trader Account Ban Rumors

The Central Bank of Nigeria (CBN) has moved to quash rumors about the purported banning of peer-to-peer (P2P) trader accounts, emphasizing the importance of relying on authentic updates from its official website, cbn.gov.ng. Despite this clarification, uncertainties persist regarding cryptocurrency regulations in the country, with concerns raised about transparency and oversight.

CBN Clarification Comes Amid Regulation Uncertainties

The clarification from the CBN comes amidst ongoing discussions and debates surrounding the regulation of cryptocurrencies in Nigeria. While the CBN has taken a cautious approach towards digital currencies, expressing concerns about their potential risks and implications for monetary policy and financial stability, the lack of clear regulatory frameworks has led to uncertainty among market participants.

Meanwhile, Nigeria has emerged as the largest P2P crypto market globally, following the CBN’s ban on institutions from buying and selling crypto in 2021. However, a circular issued to banks in December 2023 lifted the ban.

Nigeria’s Apex Bank Worries Over Binance Activities

The concerns raised have come to light, especially after recent disclosures regarding the movement of funds through platforms such as Binance.

The country has intensified its monitoring of Binance, as the CBN voiced worries regarding “suspicious transactions” conducted through the exchange’s Nigerian branch in 2023. CBN Governor Olayemi Cardoso pointed out that $26 billion flowed through Binance in Nigeroa in 2023, originating from undisclosed sources and users.

To regulate cryptocurrency exchanges the National Security Adviser’s office reportedly detained two senior Binance officials in Abuja, Nigeria’s capital.

Nigeria is the Most Crypto Aware Country

As per research by the Web 3.0 software firm Consensys last year, Nigeria leads all other regions in cryptocurrency consciousness, having 99% of the population familiar with the concept and 91% willing to invest.

The company discovered that four out of five Nigerians are familiar with cryptocurrencies and practically all of them had heard of it. Nigerians view cryptocurrencies as a substitute for conventional finance. Additionally, 58% of Nigerians aged above 18 and below 65 who participated in the study, believe cryptocurrencies will be the next form of money.

Due to the volatility of the local currency, Naira, several individuals have ventured into the cryptocurrency industry. This has formed a major mainstay for the youths, making the whole Binance saga a locally tormenting ordeal for traders.