KuCoin pauses P2P trading in Nigeria amidst regulatory concerns

KuCoin, the global cryptocurrency company, announced that as of May 15, 2024, it is suspending all peer-to-peer (P2P) trading and fast buy services via naira card. This decision comes after the Security and Exchange Commission (SEC) hinted at a potential ban on P2P across all cryptocurrency platforms. 

 Be smart: On KuCoin, the “fast buy” feature lets users buy cryptocurrency directly with their Naira debit or credit cards. 

The details 

• The company said it will be working to comply with local regulations during the naira P2P suspension. 
• It assured users that ongoing orders will be completed and all other services will remain available.  
• This follows recent comments by the acting SEC chief suggesting a potential P2P ban during a meeting with the Blockchain Industry Coordinating Committee of Nigeria (BICCoN).

Key quote 

• According to KuCoin,  

“We are pausing temporarily to enhance compliance and security for our users. We appreciate our user’s understanding and cooperation during this period of change. The KuCoin team is committed to resolving this matter swiftly and efficiently.” 

Key Background  

• Nigeria’s foreign exchange situation continues to be a cause for concern, as uncertain oil markets and dwindling foreign investment put pressure on the country’s foreign exchange reserves.  
• These factors, in turn, have continued to weigh on the naira, whose value has dropped by more than 60% in the past year. 
• The Nigerian government believes that bad players are taking advantage of the weak naira by manipulating its value using tools like P2P trading, mainly because of the process of setting exchange rates on P2P platforms. 
• This led to the recent crackdown on cryptocurrency in Nigeria, starting with Binance in February. The Nigerian government arrested two Binance employees, one of whom remains in custody. Binance has since stopped offering naira P2P services.