Central Bank’s goal of P2P crypto trading forces startups to exit Nigeria – Regulate Bitcoin News
Kurepay, a Nigerian startup that supports cryptocurrency and fiat currency social payment applications, stated that the current crackdown on crypto entities by the Central Bank of Nigeria (CBN) has forced it to suspend operations in Nigeria.
The “horrible” year of encryption adoption
According to a report Cryptoassetbuyer said that the suspension of operations will begin in the first quarter of 2022. At that time, Kurepay, an application using blockchain technology, will begin to restrict its business to over-the-counter transactions (OTC) and encryption consulting services.
When commenting on the startup’s plan to withdraw from West African countries, Kurepay CEO Abikure Tega was quoted as what he described as a bad year for cryptocurrency adoption and expansion in Nigeria. He said:
This year is very scary for Nigeria’s cryptocurrency adoption and expansion, as CBN continues to take drastic measures to slow down and hinder Nigeria’s ability to participate in the world’s fastest-growing emerging industries.
Tega added that when CBN refused to allow crypto companies to enter the banking ecosystem, this led to the closure of many cryptocurrency businesses. The same blockade also forced other companies to use P2P systems to reduce their business to a skeleton stream. According to the CEO, the central bank’s February 5 directive forced Kurepay to switch to a proxy network model that enables customers to directly transact with each other.
The last straw of current CBN suppression
However, since the beginning of November 2021, CBN has increased its bets on cryptocurrency traders and now targets entities and individuals that provide P2P platforms or services to customers buying and selling cryptocurrencies.As before Report According to a Bitcoin.com news report, the new round of CBN crackdowns has caused some banks to arbitrarily freeze the bank accounts of individuals suspected of trading cryptocurrencies.
For Kurepay, this goal of a platform that supports P2P transactions proved to be the last straw, as Tega explained:
CBN’s recent humble attitude when closing Nigerian bank accounts is related to cryptocurrency transactions that affect most of Kurepay’s agency partners in the name of regulation, which is unfair and frustrating. Considering that Nigeria is not a lawless country, it is difficult for us to understand the recent suppression. Therefore, Kurepay, Africa’s most important cryptocurrency and legal currency social payment application, announced the suspension of business operations in Nigeria.
In addition to restricting its business to off-site transactions and encryption consulting services, Tega said that Kurepay also plans to “operate a US company to innovate in a more friendly business environment.” The CEO argued that this move allows Kurepay to operate legally without worrying about the CBN directive.
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