Crypto access issues raise questions about Nigeria’s regulatory intentions.
The Nigerian government needs to clarify its stance on the crypto industry because its recent actions are sending mixed signals to the wider community, said Nathaniel Luz, co-founder and chief marketing officer of FlinkCap, a local crypto over-the-counter (OTC) exchange.
This comes after local crypto users recently reported that they were unable to access the websites of various crypto exchanges using traditional telecommunication providers such as Binance, OctaFX and others. This came to light on February 21, giving a speculative reason about a possible government ban on crypto platforms.
Speaking to Cointelegraph, Luz said that the Nigerian government seems not interested in building good relations with people in the crypto space. The government blames the current exchange rate of 1,800 Nigerian naira to $1 on OTC traders selling naira in the peer-to-peer (P2P) market for Tether (USDT).
Bio Onanuga has a short memory. You cannot block cryptocurrency effectively. China in 2010 It did in 2017, and its citizens trade it to this day. Nigeria in the year In 2017, Nigeria became the 8th largest crypto trading country.
Focus on fiscal policies like eliminating corruption, curbing waste, improving… https://t.co/6U2flrNp5Y
— That Naija Guy™ (@IamThatNaijaGuy) February 21, 2024
Luz insists that it is incorrect to blame OTC traders for the current value of the naira, as the crypto industry is not responsible for the economic downturn or the decline of the naira. he said:
“I have seen different things in my life. I studied central banks and currencies. But I have yet to see a government that will take responsibility for currency failure like the Nigerian government is doing today.
Listing issues such as surplus naira, insufficient US dollar volume, high dependence on imports, emigration, currency volatility and uncertainty about Eurobond payments, Luz said these issues are not relevant to the domestic crypto industry.
Related: Nigeria's tech agency pushes AI integration for improved security
In the year In December 2023, the Nigerian government lifted the 2021 crypto ban imposed by the country's Securities and Exchange Commission and the Central Bank of Nigeria to allow them to apply for a license in Nigeria.
However, many crypto startups are still trying to meet the licensing requirements, which include a paid-up capital of 500 million naira ($340,000) and an application fee of 30 million naira ($20,000). Luz said the Nigerian government would be better off fixing licensing issues for the local currency instead of blaming the local crypto ecosystem for its foreign exchange woes.
Nigeria is currently the largest P2P market in the world, after the Central Bank of Nigeria banned institutions from buying and selling crypto in 2021.
Magazine: Asia Express: HK game firm to buy 100M crypto treasury, China/UAE CBCC deal
