In today’s edition of Bitmama’s weekly crypto news roundup, we cover interesting topics in the cryptocurrency industry. From Nigerian Bitcoin P2P weekly trading volume dropping by 43% to Africa ranking among the top three regions experiencing crypto market growth, we’ve got a lot to share. Let’s get started.
Nigeria is pushing cryptocurrency traders out of its banking system
On Wednesday, November 3, Nigeria’s Central Bank issued a Post-No-Debit circular to commercial banks, instructing them to close the accounts of named bank customers, suspected as to have engaged in cryptocurrency trading, referencing the CBN Circular BSD/DIR/PUB/014/001 dated 5 February 2021.
Conversely, the referenced circular does not prohibit trading in cryptocurrency. According to the CBN in its press statement released on Feb. 7th, 2021, the Feb. 5th circular did not place any new ban on cryptocurrencies. It merely reiterated the contents of an older circular, released in 2017, which warned banks not to deal in cryptocurrency and to ensure that existing customers who are virtual currency exchangers have effective AML/CFT controls that enable them to comply with KYC and transaction monitoring requirements.
‘’While this raises concerns on the stand of the Nigerian government on crypto transactions, crypto traders are becoming extremely careful and are constantly evolving their trading processes to avoid the prying eyes of the Nigerian Central Bank.’’
Africa is among top 3 for crypto market growth
The Bitcoin Magazine reported recently that Africa’s crypto trading market is now the third fastest-growing in the world. The magazine reported it according to the research done by Chainalysis, which showed that the market in the region from July 2020 to mid-2021 increased by $105 billion.
The report also indicated the countries leading crypto adoption, in which several countries from Africa made the top 20. Among those countries are Kenya, South Africa, Ghana, and many others who have witnessed a huge surge in crypto transactions over the past year.
The crypto trading market continues to advance around the world, and Africa is no exception. The continent has emerged one of the global leaders in crypto growth rate over the past few years, and its forecasted to have an upshoot in crypto popularity in the coming years.
Nigerian Bitcoin P2P weekly trading volume drops by 43% as CBN hits hard on crypto
Crypto transactions at Africa’s biggest crypto market are stalling on the P2P level due to the fierce battle between Nigeria’s apex bank and Crypto transactions through its financial ecosystem.
The Central Bank of Nigeria (CBN) began a deliberate clampdown on Crypto users in February 2021, giving the Crypto space a rocky stance in subsequent months. Although, traders still managed to circumvent the barriers, and at some point, P2P trading boomed, the CBN’s latest clampdown is proving a big threat to the fluidity of cryptocurrency transactions.
In this past week, Nigeria’s peer-to-peer transactions dropped by 43%, but still topped Africa’s largest crypto market as Kenya and South Africa recorded a trading volume of about $2.8 million and $1.8 million respectively.
It’s uncertain how much the strict conditions of trading crypto in Nigeria will impact Africa’s largest crypto market. In the meantime, traders are still finding ways to ensure dealings, despite the rough terrain and risk of losing it all.
Peer-to-peer trading refers to an exchange of crypto between parties (such as individuals) without involving a central authority. Peer to peer exchange of Bitcoins between individuals and groups takes a decentralized approach but still, a growing number of Nigerians use their banks to settle in cash while carrying out their P2P trading.