Paxful, a major peer-to-peer cryptocurrency platform in Nigeria, has in a recent report disclosed that Nigerians traded over N77.5 billion or $185 million of Bitcoin between January – March 2022 despite the restriction on cryptocurrency. This figure is a 5.71% increase from the N73.54 billion of the same period in 2021.
Overview of the report
- Paxful noted that Bitcoin transactions traded in Nigeria amounted to 28.57% of the N300.48 billion or $715 million carried out on the platform in Q1 2022.
- Again, Nigeria averaged 16,000 daily trades in 2021 making it the platform’s largest transacting country.
What this means
Regardless of the CBN’s efforts to regulate the operation of digital currencies in the country, Nigerian traders are devising creative ways to outsmart the system as they continue to hit new trade records.
What you should know
- In February 2021, the Central Bank of Nigeria directed all commercial banks in the country to stop processing cryptocurrency transactions in order to deal with the threat Nigeria’s financial system faced at the time. CBN even fined banks who defaulted in reporting cryptocurrency transactions.
- Later on in the year, the SEC Director-General announced that the commission had inaugurated a department to investigate the crypto industry.
- Following the restriction on the trade of cryptocurrencies in Nigeria, citizens resolved to peer-to-peer platforms to continue processing cryptocurrencies in the country.
- Nigeria’s Securities and Exchange Commission (SEC) then published a new set of rules guiding the issuance, exchange and ownership of digital assets, such as Bitcoins/NFTs in the country.
- Corresponding reports from Chainalysis and KuCoin, the trade of cryptocurrencies has increased in Nigeria amidst the ban.