Nigerian Crypto Exchanges and P2P Traders Support Lift for War Ban

In a circular sent to banks on December 22, the Central Bank of Nigeria (CBN) disclosed that it has now lifted restrictions on Nigerian banks facilitating cryptocurrency transactions. However, the crypto community expects competition to heat up between crypto-fiat exchanges and peer-to-peer (P2P) traders.

The CBN's ban on Nigerian banks from handling crypto transactions initially put P2P traders on edge. The ban was to destroy the use of Bitcoin and crypto in Nigeria. Instead, the crypto community has turned to peer-to-peer trading or sending payments directly to each other.

Cointelegraph spoke to stakeholders in the local crypto ecosystem to understand how the industry and community are embracing the new development. Speaking to Cointelegraph, Flinkap co-founder and CMO Nathaniel Luz said lifting the ban would be a big plus for the industry. He said the signs of development show that Nigeria is ready for crypto businesses to be home to and operate in.

Luz stressed that institutional exchanges should be preparing for the Nigerian market when the ban is lifted, because their absence during the ban allowed P2P to go through the cost ceiling of other crypto businesses.

“So now, crypto-fiat exchanges and P2P merchants will be fighting for the world's largest crypto P2P market for absolute survival.”

Responding to whether the registration requirements with the SEC will deter businesses from coming to Nigeria, Luz said that while it is a challenge for startups to obtain SEC approval, he believes it will benefit the crypto sector.

Related: Nigeria's top banks collaborate on new cNGN stablecoin

In the year He explained some changes in the Nigerian banking sector in 2010 through the recapitalization policy. Investors have bought some banks, and some have merged, creating a better banking sector.

In the year In February 2021, Cointelegraph reported that the Central Bank of Nigeria had banned all regulated financial institutions from providing services to crypto exchanges.

However, according to the circular, the CBN recognizes that it is unfair to maintain the strict restrictions imposed on financial institutions in 2021 due to the global demand and adoption of crypto.

Magazine: HK gaming company to buy $100m crypto treasury, China/UAE CBCC deal: Asia Express