Venture capitalists still see potential in Nigeria despite the suggested increased crypto registration fees. However, the services they can provide may struggle to gain momentum due to government restrictions on peer-to-peer (P2P) platforms aimed at curbing free market promotion, according to Ray Youssef, the CEO of NoOnes, a financial communication and P2P app.
A recent report by Nigeria’s Securities and Exchange Commission (SEC) proposed an amendment to the rules guiding platforms offering crypto services and suggested a hike in the registration fee for crypto exchanges from 30 million naira ($18,620) to 150 million naira ($93,000).
Speaking with Cointelegraph, Youssef, who is the co-founder and former CEO of the shuttered P2P exchange Paxful, said the increase is an invitation for the 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 strategy conflicts with the Nigerian crypto market’s strong preference for P2P trading, posing a considerable obstacle for exchanges. However, Youssef remains optimistic about Nigeria’s chance of maintaining its position in the ecosystem despite the recent regulation challenges.
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