By Akinsuroju Olubunmi
KuCoin halts Naira trading
KuCoin, a leading cryptocurrency exchange, has temporarily suspended its peer-to-peer naira services and fast-buy service using naira cards. This decision was announced on Wednesday, following a recent meeting between the Nigerian Securities and Exchange Commission and major crypto stakeholders, where the unstable state of the naira was discussed.
While KuCoin mentioned ongoing efforts to enhance its services as the reason for the suspension, many believe the move is due to regulatory pressure from the Nigerian government. This makes KuCoin one of several exchanges, including Binance and OKX, to suspend naira support in recent months.
In a statement on X (formerly Twitter), KuCoin expressed regret to its Nigerian users, saying, “We regret to inform our Nigerian users of the temporary pause of our P2P services. We are eagerly looking forward to resuming the P2P Nigerian Naira (NGN) services and fast-buy service via Naira cards in a fully compliant manner.”
The suspension has left many Nigerian cryptocurrency users uncertain about when services will resume. KuCoin has assured users they will be notified once services are restored, but no timeline has been provided.
Recently, Nigerian authorities have intensified their crackdown on cryptocurrency exchanges, citing concerns over the naira’s stability. Fintechs and banks were instructed to cease opening new accounts and report any accounts involved in cryptocurrency transactions. This directive aligned with the Economic and Financial Crimes Commission’s move to block thousands of accounts linked to crypto trading.
In 2021, the Central Bank of Nigeria had ordered banks to close accounts associated with cryptocurrency exchanges, labeling such transactions as “prohibited.” Despite these measures, cryptocurrency adoption in Nigeria has surged, with the country ranking second globally in a 2023 crypto adoption index. Nigerians have increasingly turned to crypto to safeguard their savings amid the naira’s devaluation.
Experts warn that the crackdown may push millions of Nigerians towards riskier peer-to-peer transactions and harm the country’s reputation. They advocate for a more balanced regulatory approach that protects interests while fostering innovation.
Naira, services.
KuCoin halts Naira trading