As Nigeria intensifies efforts to regulate the cryptocurrency industry, concerns are mounting that several digital asset businesses may struggle to survive under the emerging regulatory framework.
The Securities and Exchange Commission (SEC) and the Central Bank of Nigeria (CBN) have recently doubled down on enforcement measures targeting cryptocurrency exchanges, peer-to-peer (P2P) trading platforms, and digital wallet providers. The move comes amid growing fears over the use of crypto assets for money laundering, terrorism financing, and capital flight, particularly as the naira remains under pressure.
Analysts say the new regulatory wave, particularly the CBN’s directive to halt P2P trading of the naira on crypto platforms, is a major blow to the business models of many local and international crypto companies operating in the country. These businesses heavily rely on P2P networks to facilitate crypto-naira transactions in the absence of banking support.
Several firms have already begun scaling back operations or exiting the Nigerian market altogether. Meanwhile, smaller startups without compliance infrastructure or legal buffers may face total shutdown as the crackdown deepens.
Industry stakeholders are urging the government to adopt a more inclusive approach, warning that overregulation could stifle innovation, push activity underground, and deny the youth population access to opportunities in the digital economy.
However, regulators maintain that oversight is necessary to protect investors, stabilize the economy, and prevent Nigeria from becoming a hub for illicit financial flows.
The coming months will be crucial as the fate of many crypto ventures hangs in the balance, awaiting clarity on licensing requirements, operational guidelines, and potential sanctions.
