Nigeria has announced plans to ban person-to-person cryptocurrency trading in the naira as part of its efforts to regulate the industry and protect its local currency. The Securities and Exchange Commission (SEC) revealed that new regulations covering crypto exchanges and digital asset custodians will be introduced in the coming days.

SEC Director General Emomotimi Agama emphasized the need to delist the naira from peer-to-peer (P2P) platforms to prevent manipulation that could harm the currency. The move comes amid concerns about the impact of crypto trading on the exchange rate of the naira.

The decision to crack down on cryptocurrency trading follows Nigeria’s recent ban on Binance Holdings Ltd., the world’s largest crypto exchange. Two executives from Binance were arrested in Nigeria earlier this year, with one of them currently in jail facing charges including tax evasion and money laundering.

Nigeria’s actions reflect a broader trend in Africa, where residents are turning to cryptocurrencies as a hedge against currency devaluation. The naira has experienced a significant decline in value against the dollar, prompting the government to tighten regulations on crypto transactions.

Central bank Governor Olayemi Cardoso accused Binance of facilitating illicit transactions in the naira, leading to the platform being blocked by authorities. The SEC has vowed to use its regulatory powers to address activities that threaten national interests and stability.

As Nigeria continues to navigate the complexities of the crypto landscape, the government is taking proactive steps to regulate the industry and protect its financial system from potential risks. The upcoming regulations are expected to provide clarity and oversight in a rapidly evolving sector.