Ray Youssef, CEO of leading Nigerian cryptocurrency platform NoOnes, has unveiled staggering insights into the peer-to-peer (P2P) trading sector, estimating its value at approximately $500 billion within Nigeria alone.
In an interview with Techpoint Africa, Youssef highlighted the significance of P2P transactions in the Nigerian cryptocurrency ecosystem, particularly amidst looming regulatory challenges.
Youssef emphasized that the actual P2P trading volume far exceeds the officially reported figures, suggesting that the true value could be ten times higher than the reported $59-60 billion annual volume.
According to Youssef, the bulk of P2P transactions occur outside centralized platforms like Binance, often taking place on messaging apps like WhatsApp and Telegram, as well as in informal settings such as coffee shops and street corners.
The discussion around cryptocurrency regulation in Nigeria intensified following the Central Bank of Nigeria's (CBN) issuance of a circular in February 2021, which initially sought to restrict cryptocurrency transactions. However, subsequent directives from the administration of President Bola Tinubu eased the ban, allowing banks and financial institutions to provide cryptocurrency services under regulatory guidelines.
Despite regulatory fluctuations, concerns persist regarding the impact of cryptocurrency trading on the stability of the Nigerian economy. Recent crackdowns on global exchanges like Binance and the freezing of over 1,000 bank accounts linked to P2P transactions underscore the regulatory scrutiny facing the industry.
Amidst these developments, Nigerian cryptocurrency enthusiasts, especially P2P traders, have voiced their opposition to potential bans, arguing that cryptocurrency should not be scapegoated for broader economic challenges.
As debates surrounding cryptocurrency regulation continue, fintech startups like Moniepoint, Paga, and Palmpay have signaled their intent to comply with government directives and potentially restrict cryptocurrency-related transactions, signaling a broader shift in the regulatory landscape.
