Naira Decline: FG Considers Suspending $56.7 Billion in the in the Crypto Market Amid Regulatory Concerns

In the wake of a pivotal meeting scheduled for Monday between the Securities and Exchange Commission (SEC) and key players in the digital asset industry, speculation looms over the potential suspension of Nigeria’s $56.7 billion peer-to-peer (P2P) cryptocurrency market.

The impetus behind this potential move stems from a growing concern within the Federal Government regarding illicit activities and their destabilizing impact on the naira exchange rate.

This sentiment is reinforced by findings from the 2023 Geography of Cryptocurrency Report by Chainalysis, which highlights Nigeria’s nine percent surge in crypto transaction volume to $56.7 billion between July 2022 and June 2023.

The impending meeting signifies a broader governmental initiative aimed at bolstering regulatory oversight within the cryptocurrency sphere.

The proposed temporary suspension of P2P crypto trading is viewed as a strategic measure to facilitate the development of comprehensive regulations tailored to address the sector’s challenges effectively.

As stakeholders brace for Monday’s deliberations, the outcome holds significant implications for Nigeria’s burgeoning cryptocurrency market and its broader economic landscape.

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Fasholu Gabriel Oluwatobi

Gabriel O. Fasholu is the founder and editor of SPYCONNET. A brilliant Educationist, Social Media Enthusiast & Freelancer who is passionate about passing undefiled information to the entire public.

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