KuCoin, a major cryptocurrency exchange, has slammed the brakes on its Nigerian naira (NGN) peer-to-peer (P2P) trading and direct Naira card purchases. This move comes amidst a swirling vortex of regulatory scrutiny from Nigerian authorities and their recent clashes with another exchange giant, Binance.

Nigeria's watchdogs, especially the Securities and Exchange Commission (SEC), have been tightening their grip on P2P crypto trading. The SEC even summoned industry players for a meeting three weeks ago, urging them to cease P2P activities altogether. Analysts believe KuCoin's decision is a strategic retreat to avoid the Nigerian government's wrath, similar to the recent troubles faced by Binance.

Nigerian Naira Under Siege

The Nigerian government has launched a multi-pronged attack on P2P crypto trading. The authorities have instructed banks and fintech companies to shut down accounts linked to crypto transactions and report them. The Economic and Financial Crimes Commission (EFCC) has also joined the fray, freezing thousands of accounts allegedly involved in crypto trading.

Emomotimi Agama, the SEC's Director-General, blames P2P crypto trading for the weakening Naira, as reported by TechCabal. The recent plunge of the Naira to N1,520 per dollar only fuels these concerns.

Binance's Nigerian Nightmare

Adding fuel to the fire is the ongoing feud between Binance and Nigerian authorities. Binance CEO Richard Teng recently accused a Nigerian official of demanding a hefty $150 million bribe in cryptocurrency to settle the government's claims against the exchange. Binance alleges this "settlement" was essentially a veiled attempt at extortion.

Nigeria vehemently denies these accusations, calling them a mere distraction tactic. Regardless, Binance was forced to halt all services involving the Naira after facing intense regulatory pressure. The government even imposed a staggering $10 billion fine on the exchange, highlighting their determination to control the crypto space.

Global Crypto Crackdown

Binance's woes extend beyond Nigeria. Regulatory bodies worldwide are casting a watchful eye on crypto exchanges. The US Commodity Futures Trading Commission (CFTC) and the Securities and Exchange Commission (SEC) have both filed charges against Binance for various alleged violations.

KuCoin's pause on Nigerian Naira services underscores the growing regulatory uncertainty surrounding the crypto market in Nigeria and beyond. The future remains hazy for crypto enthusiasts in Nigeria as the government grapples with how to tame this volatile and rapidly evolving frontier.