KuCoin discontinues naira-based P2P trading as Nigeria clampdowns on crypto exchanges

Popular crypto exchange, KuCoin, has ‘temporarily suspended’ naira peer-to-peer trading on its platform, Technext can confirm. 

According to a statement released on its website on Wednesday morning, the ‘important updates’ are in tandem with the exchange’s ‘commitment to accelerate compliance process.’ At noon on Wednesday, we can confirm that the naira p2p trading feature is no longer available on the Kucoin marketplace.

As a refresher, KuCoin and other major exchanges became prominent options for Nigerian USDT/NGN traders when the Nigerian authorities began the clampdown on Binance in February 2024. 

According to the Central Bank of Nigeria, the Securities and Exchange Commission, the Economic and Financial Crime Commission and other regulators, USDT trading is the cause of the crash the local currency has been experiencing in recent months. 

After the arrest and detention of Binance executives, the largest crypto exchange in the world disabled its p2p marketplace for Nigerian users and different drama continues to unfold surrounding the bail/detention of the Binance executives. 

Related post: FG denies asking Binance for $150 million bribe to drop all criminal charges

Now, the Nigerian authorities have taken another step in its series of clampdown measures to ‘save the naira’ by going after KuCoin, which alongside other exchanges has become an alternative for Nigerian crypto traders in the past 3 months. 

More on the KuCoin p2p suspension 

According to the statement released on its website, KuCoin said that this is a temporary pause and that it demonstrates the company’s commitment to compliance. The release says all ongoing orders would be completed and all other services would remain available. 

“Rest assured that your assets are safe at KuCoin. While we understand that this may require some adjustments to your trading preferences, we want to assure you that this decision is a step towards an even better trading experience for you.”  The KuCoin statement said. 

The exchange said it will focus on ensuring compliance and creating a more robust and secure environment for all its users during this temporary pause. It added that the KuCoin team is committed to resolving the matter swiftly and efficiently. 

“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. Together, we strive to build a vibrant and thriving trading ecosystem. Thank you for your unwavering support. We are excited about the future opportunities that may be held for all of us.”  – KuCoin concluded. 

P2P trading in Nigeria 

Last week, we reported how Emomotimi Agama, the newly appointed Director General of the Nigerian Securities and Exchange Commission (SEC) said the regulator would use all its power to protect the ailing local currency by going all out against naira saboteurs in the fintech and crypto space. 

According to Emomotimi Agama, the crypto and fintech sector houses a significant portion of FX manipulators in the country. And, in line with the ‘Renewed Hope’ agenda of the country’s president, Bola Ahmed Tinubu, the commission, in collaboration with other government entities to bring culprits to book.

Also, he announced that in the coming days, the Securities and Exchange Commission will remove the naira from all peer-to-peer platforms, as part of its efforts to regulate platforms to combat the manipulation of local currency values in the foreign exchange market.

In his words:

“That is one of the things that must be done to save this space. The delisting of the naira from the P2P platforms to avoid the level of manipulation that is currently happening. I want your cooperation in dealing with this as we roll out regulations in the coming days.”

Now, this clampdown on KuCoin is a step in the direction he promised. We have written an article about how USDT/NGN trading isn’t the cause of the naira crisis.

Read about it here: Here is why USDT trading on Binance P2P is not the cause of the Naira free fall