OKX disables the Naira NGN Feature on its P2P Market

OKX disables the Naira (NGN) Feature on its P2P Market.
 

Hi there, trading in Naira is no longer available on our platform due to a change in local market requirements. However, we want to assure you that you can still engage in P2P trading using other currencies.

We understand that this change might have an impact on your trading…

— OKX Help Desk (@OKXHelpDesk) May 3, 2024

The Nigerian cryptocurrency community has been shocked by this decision, leaving many users wondering what the implications are and which alternative P2P platform is available to trade their cryptocurrencies.

According to the reply it sent to its customers on the X platform (formerly known as Twitter), OKX users can no longer trade in Naira on the platform due to a change in local market requirements.

It was noted that this discontinuation affects NGN services exclusively, and users can still engage in P2P trading using other currencies.

Local media outlet Techcabal also reported earlier today that following Nigeria’s National Security Adviser's (NSA) classification of cryptocurrency trading as a national security issue, at least three Nigerian fintech startups—Palmpay, Paga, and Moniepoint—will block the accounts of customers buying and selling cryptocurrency and report those transactions to law enforcement.

According to Tosin Eniolorunda, CEO of Moniepoint, this designation indicates that a new cryptocurrency regulation that forbids peer-to-peer cryptocurrency trading is being developed.

A second source familiar with the discussions informed TechCabal that a rule banning peer-to-peer trading (P2P) would soon be made available to the public.

If the ban is implemented, it will be a significant change in regulations following the Bola Tinubu administration's initial softening of its stance on cryptocurrencies.

At least three cryptocurrency exchanges were in talks with the Securities and Exchange Commission (SEC) regarding a crypto license when the Central Bank lifted a two-year ban on cryptocurrency transactions in December 2023.

After Binance disabled P2P for Nigerian users in March, OKX is the second cryptocurrency platform to do the same for its users.

Binance announced on Tuesday, March 5, that it will stop accepting naira deposits after Tuesday afternoon and will stop facilitating withdrawals of the currency after 6 a.m. UTC on Friday.

Following the Monetary Policy Committee meeting, Olayemi Cardoso, the governor of the Central Bank of Nigeria, informed the media that $26 billion had come through Binance Nigeria from "unknown sources" in the previous year.

Additionally, the platform has been charged by the federal government with manipulating foreign exchange rates through rate-fixing and currency speculation.

Nigeria is recognized as one of the largest cryptocurrency markets globally, and there is still uncertainty surrounding the future of cryptocurrencies in the country.
 
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