Poor Regulation Spurs P2P. The President of the Stakeholders in Blockchain Technology Association of Nigeria (SiBAN), Mr. Obinna Iwuno, recently highlighted the surge in peer-to-peer (P2P) cryptocurrency trading as a direct consequence of the lack of regulatory frameworks in Nigeria. During an online discussion focusing on the state of web3 in the country, held amid a governmental crackdown on crypto activities, Iwuno pointed out that regulated exchanges would have been the preferred platforms for crypto trading if the government had set clear regulations.

Iwuno expressed concerns about the potential criminalization of crypto trading, emphasizing the urgency for the government to understand the cryptocurrency business to prevent such outcomes. He argued that not only is regulation crucial for legitimizing the industry, but it is also essential for warding off unfounded accusations of economic sabotage, such as manipulating foreign exchange rates

“The rise of P2P is actually a symptom of the regulatory vacuum. With proper regulation, there wouldn’t have been such a shift towards P2P platforms that are now being wrongfully accused of economic sabotage,” Iwuno stated during the meeting attended by numerous crypto traders.

In his call to action, Iwuno urged stakeholders to unite and reshape the public narrative, asserting that the industry is wrongly portrayed by the government as a threat to the economy. He stressed the importance of establishing a regulated environment to foster economic development and wealth creation through emerging technologies.

“We are at a critical juncture where we need to correct misconceptions and defend our industry from unwarranted attacks. Operating in a regulated framework would significantly enhance our prospects for contributing positively to the economy,” he added.

Poor Regulation Spurs P2P, Amidst these discussions, Nigeria’s National Security Adviser recently deemed cryptocurrency trading a national security concern, prompting the Central Bank of Nigeria to instruct major fintechs like Opay, Moniepoint, Paga, and Palmpay to halt crypto transactions and report them to the authorities. This followed an earlier directive by the Economic and Financial Crimes Commission (EFCC) to freeze over a thousand bank accounts suspected of engaging in illegal foreign exchange transactions. Following these directives, the fintechs issued warnings to their customers about the repercussions of engaging in cryptocurrency trading, including account blockages and potential legal actions.

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