Home
News
Ray Youssef is hopeful Nigeria’s crypto industry will grow despite recent regulatory hurdles. Data shows that Nigeria is experiencing a surge in the crypto market.
Despite the proposed increase in crypto registration fees, venture capitalists still see potential in Nigeria. However, the services they provide may struggle to gain momentum due to government restrictions on P2P platforms aimed at curbing free market promotion, according to Ray Youssef, the CEO of NoOnes, a financial communication and P2P app.
What is Ray Youssef’s NoOnes
NoOnes is an app that connects people to the global financial system, empowering them in the process. Its marketplace allows users from the Global South to trade with a variety of payment methods while also facilitating peer-to-peer payments through a Bitcoin wallet that stores value.
NoOnes offers more than 450 payment methods, which include banks, Momo, and online wallets. The app’s fees are as follows: there is no fee for selling cryptocurrency, no fee for credit/debit cards, digital currencies, online wallets, and cash, which is set at 1%, no fee for gift cards, which is set at 5%, and 0% trading fees for the USDT and Nigerian Naira pair.
Crypto Regulations in Nigeria
A recent report by Nigeria’s Securities and Exchange Commission (SEC) suggested amendments to the rules guiding platforms offering crypto services. The proposed report recommends increasing the registration fee for crypto exchanges from 30 million naira ($18,620) to 150 million naira ($93,000).
Youssef believes that the increase will attract crypto “big boys” like Coinbase and other major companies to operate in the Nigerian market. He emphasized that the government aims to restrict P2P services to address foreign exchange challenges, and exchanges willing to forgo P2P support can operate smoothly in Nigeria.
However, this approach contradicts the Nigerian crypto market’s strong preference for P2P trading, a major challenge for exchanges. Nonetheless, despite the recent regulatory challenges, Youssef is still hopeful regarding Nigeria’s ability to maintain its position in the ecosystem.
Youssef Shares His Views
Youssef said the government could use the abundance of P2P traders in Nigeria. They can be used as an asset and treat crypto stakeholders as allies to understand how to use crypto to the advantage of the nation’s economy.
Nigeria is currently the world’s largest P2P crypto market, which came about after the Central Bank of Nigeria banned institutions from buying and selling crypto in 2021. As of December 2023, Nigerian crypto exchanges can apply for licenses in Nigeria following the government’s lifting of the 2021 crypto ban.
Regarding the recent partnership between Gluwa and the Nigerian government to improve the adoption of the nation’s central bank digital currency (CBDC), the eNaira, Youssef said the government could have taken a different approach when introducing the CBDC.
This could be done by leveraging it to stimulate local economic growth, providing credit to aspiring entrepreneurs, and encouraging the younger generation to embrace it. In February, the Nigerian government’s criticism of crypto exchanges singled out Binance. This ceased operations using the naira on March 8.
Summary
Nigeria’s SEC proposed higher crypto registration fees. Despite government criticism of exchanges, venture capitalists still see potential in Nigeria’s crypto market. P2P trading is preferred, posing an obstacle for exchanges. In February, Binance was criticized by the Nigerian government.
Disclaimer
The views and opinions stated by the author or any people named in this article are for informational purposes only. They do not establish financial, investment, or other advice. Investing in or trading in stocks, cryptos, or other related indexes comes with a risk of financial loss.
Steve Anderson is an Australian crypto enthusiast. He is a specialist in management and trading for over 5 years. Steve has worked as a crypto trader, he loves learning about decentralisation, understanding the true potential of the blockchain.
