For the past few months, the Nigerian government has been working to revive the nation's Naira currency, presently trapped in a web of fluctuations and instabilities.
Consequently, the Nigerian authorities have targeted crypto exchanges, shutting their operations in the West African nation, removing Naira from every Peer-to-Peer (P2P) platforms, ordered fintech firms operating within the country to block every account carrying out crypto-related transactions, among several other measures.
Speaking about government plans to delist the Nigerian currency from all P2P platforms, Emomotimi Agama, the Director General of the Securities and Exchange Commission (SEC) in Nigeria, noted that the move was crucial to mitigate the rate of Naira manipulation.
IMF Proffers Possible Solution To Salvage Naira
Amid the government's concentrated efforts, the International Monetary Fund (IMF) has acknowledged the Nigerian authorities' efforts to salvage Naira via an official report. Going further, the financial agency advised the Nigerian government to impose tight regulations on crypto trading firms operating in the country.
A section of the released report read thus, “Global crypto trading platforms should be registered or licensed in Nigeria and subject to the same regulatory requirements applicable to financial intermediaries following the principle of the same activity, same risk, and same regulation.”
In addition, the IMF decried the increasing rate of foreign exchange establishments in the Nigerian market, stating that it could pose significant challenges to the nation's financial stability.
Global Regulatory Bodies Opting For Stricter Measures
Across the globe, regulatory scrutiny seems to be getting stricter, as most countries have imposed stringent criteria that crypto platforms must meet before obtaining market access.
The above sums up Binance's woes in Nigeria, the United States, Canada, etc. Like Binance, Coinbase is facing court actions following a meltdown with the United States SEC. OKX halted its trading services in India after the nation's Financial Intelligence Unit (FIU) accused it and eight other exchanges of illegal operations in India.
In Argentina, the nation's securities regulator, Comisión Nacional de Valores (CNV), has mandated strict registration procedures for every exchange operating in the South American Nation. The directive applies to trading platforms based in Argentina and outlets operating in the country's market from other nations.
In the face of strict regulatory guidelines, it is gradually becoming apparent that crypto platforms with little or no regard for established principles will find it difficult to flourish, making regulatory compliance integral to crypto platforms' global expansion.