In a bid to stay ahead of emerging risks, the apex bank has launched a pilot supervisory programme focused on selected Virtual Asset Service Providers (VASPs).

Behind this move lies a deeper concern: safeguarding the financial system from the shadows of money laundering, terrorism financing, and proliferation threats. With the digital asset space evolving at a rapid pace, the CBN’s initiative signals a proactive effort to understand and manage the risks shaping this new financial frontier.

The initiative, anchored on existing legal frameworks including the Money Laundering (Prevention and Prohibition) Act 2022 and the Banks and Other Financial Institutions Act 2020, signals a more structured regulatory engagement with operators in the virtual asset ecosystem.

CBN in a statement said the pilot forms part of its broader risk-based supervisory strategy designed to “strengthen financial system stability and market integrity oversight of virtual asset-related activities within the Bank’s mandate.”

It noted that the exercise is not a shift in policy direction regarding digital assets but rather a supervisory engagement to deepen its understanding of emerging risks and operational models.

“This pilot does not alter, replace or supersede the existing regulatory framework governing virtual assets in Nigeria or the mandates of other competent authorities,” the CBN stated.

Consequently, it selected industry players for the initial phase which include Flutterwave, Paystack, KuCoin, alongside cNGN, Juicyway and KoinKoin.

The central bank noted that the programme is designed to build “a structured understanding of AML/CFT/CPF risks, business models, and operational practices across participating entities,” while also supporting firms to strengthen compliance frameworks in line with global standards.

In particular, the pilot aligns with recommendations of the Financial Action Task Force, especially around the implementation of the Travel Rule, which mandates transparency in cross-border digital asset transactions.

Participants in the pilot are expected to submit monthly compliance reports and key performance indicators, undergo detailed reviews spanning governance, customer onboarding and transaction monitoring, and demonstrate readiness to implement global compliance standards.

The apex bank further stressed that “participation in the pilot is strictly supervisory and does not confer any regulatory status, approval, licensing right, or authorisation on participating entities,” underscoring its cautious approach to the still-evolving sector.

The pilot will run in phases, with subsequent cohorts already scheduled, as the central bank intensifies efforts to close regulatory gaps and align Nigeria’s financial system with international best practices.

Order cancellations failed. And yet again, the cryptocurrency space was forced to reckon with the risks of depending too heavily on a single cloud provider.

At around 9:15am (8:15am GMT) on Tuesday, AWS reported a connectivity issue that affected at least a dozen of its services. The incident, which lasted for less than 40 minutes, impacted centralised exchanges that rely on AWS to power their operations.

Binance was the first to sound the alarm. For 23 minutes, users couldn’t withdraw their assets. The platform posted a brief message on X (formerly Twitter): “To keep safe, we’ve temporarily suspended withdrawals.” Barely ten minutes later, they were back online. But the damage had already begun.

KuCoin followed. “Due to a large-scale network outage with AWS services, our platform is currently experiencing temporary disruptions,” the exchange announced on X. Their spokesperson confirmed the outage hit Tokyo’s data centre directly. 

“Some services have already been restored, and our team is working closely with AWS to recover full functionality as quickly as possible. No user assets or data have been affected.”

MEXC also felt the heat. Users were left staring at abnormal candlestick charts, failed order cancellations and delays in asset transfers. “We want to assure you that your assets on MEXC remain fully secure. For any losses incurred as a result of this platform-related issue, we will prepare a compensation plan to appropriately reimburse affected users,” the exchange stated publicly.

Coinstore, Gate.io, DeBank, Rabby Wallet, Weex—one by one, platforms reported similar issues. By mid-morning, more than eight exchanges had acknowledged problems linked to the AWS outage.

For anyone watching closely, this wasn’t just a technical hiccup. It was a warning siren.

AWS, known for providing fast, scalable infrastructure, has become the spine of the crypto economy. From Binance to Coinbase, Crypto.com to Kraken, most big-name exchanges run on its cloud. When that spine snaps—even momentarily—the entire ecosystem wobbles.

“The issue has been resolved and the service is operating normally,” said an AWS spokesperson after full service was restored. But not everyone is ready to move on.

Gracy Chen, CEO of Bitget exchange, said: “AWS data centre issues impacted several CEXs — no need to panic. It’s a solid reminder: Maybe it’s time to explore decentralised cloud services.”

It’s not the first time this conversation has come up. Centralised infrastructure in crypto—ironically—is a contradiction that continues to haunt the industry. It’s efficient. It’s scalable. But it’s also brittle. One crack in the system, and everything unravels.

Edmund Chua, head of mETH Protocol, didn’t hold back: “AWS down and 90% of crypto is down. Decentralisation is a meme.”

There are already decentralised alternatives out there: Filecoin for storage, Akash Network for computing, Render Network for graphics processing. But adoption has been slow, and trust in cloud giants like AWS remains the norm—until moments like this remind everyone why that might be dangerous.

In the end, yes—assets were safe. Services came back online. But as I watched events in real time, it became clear that fixing a technical error wasn’t the only issue. The need to confront a deeper problem is a must.

Crypto was built on the idea of freedom from central control. Yet here we are, watching entire exchanges freeze because one cloud provider faltered.

• Argentina is the world’s most crypto-friendly country 
• America ranks second for crypto adoption 
• The United Arab Emirates, with the most crypto holders, ranks third 

Cryptocurrencies have been rising in popularity in recent years, with crypto ownership growing from 432 million to 580 million in 2023 alone, according to Crypto.com.

10 African Countries That Banned Cryptocurrency

While many countries have tried to regulate and suppress the technological advances, others have accepted and supported the growth of these new industries.

Argentina topped the list as the world’s most crypto-friendly country, with a large percentage of the population holding crypto and offering some of the best conditions for miners and traders alike.

Research by crypto experts at CryptoCasinos analysed 10 metrics to determine which countries across the globe have adopted crypto more so than any others, making them the most crypto-friendly nations.

The metrics chosen are the percentage of the population holding cryptocurrency, the cost and profit of mining one bitcoin, and search volume per 100,000 population for crypto-related keywords.

The data also includes the percentage share of each country’s traffic to each of the major crypto exchanges Binance, Coinbase, BitFinex, Kraken, Kucoin and OKX.

Countries with the highest rates of crypto adoption  

Argentina is the most crypto-friendly country. One in ten (9.7%) of the country’s population holds cryptocurrency, over triple the global average of 3%.

The low energy costs make it a perfect place to mine Bitcoin, costing an estimated $14,647 to mine 1 Bitcoin, meaning a profit of $51,261 (based on a BTC price of $65,908). Argentina also has one of the highest amounts of traffic (6.3%) to Binance (the world’s largest crypto exchange).

America has a high percentage of the population holding a cryptocurrency, with 15.6%. However, higher average energy costs mean it costs more to mine Bitcoin in certain parts of the States ($87,885).

Americans visited Coinbase over 48 million times in March, making up 59% of the website traffic. The US also made up 23.3% of the traffic to Kraken, showing the US is actively embracing crypto and investing through these exchanges.

Colombia ranks third for crypto adoption; the rise in blockchain activity is partly due to the depreciation of the Colombian Peso over the past few years (as reported by Bloomberg in 2022); crypto offers wealth protection from depreciating currencies.

Five per cent (5%) of the population holds crypto, and Colombians make up 5.8% of the global web traffic for the largest exchanges, which is on par with many of the other countries in this list.

Ukraine is the fourth most crypto-friendly state. Over 10% of the population holds cryptocurrency, and mining costs are particularly cheap, averaging around $19,530 per bitcoin.

Based on the price previously stated, this would mean the profit would be $46,378.  Ukraine also makes up 4.8% of the web traffic to Binance, the world’s largest crypto exchange.

The United Arab Emirates ranks fifth for crypto adoption worldwide, with the largest percentage of the population holding crypto at 30.4% (The average across all countries is 3%), only Vietnam comes close with 21%.

Search volume for crypto-related terms is also the highest with 1,415 searches per 100,000 of the population.

The UAE has been fostering a robust and flexible ecosystem to attract business and drive forward technological innovation, making the nation a frontrunner in digital adoption, as reported by Forbes in 2023.

Vietnam, ranking sixth, has continued to witness its economy becoming more digitised in the last decade, becoming one of the world’s most crypto-adopted nations and is currently Asia’s most crypto-friendly country.

Twenty million (21.2%) of the population hold cryptocurrencies. Vietnam drives 4.9% of the web traffic to crypto exchange OKX and 6.3% to Binance.

Turkey ranks seventh for crypto adoption, which could be since the Turkish lira has, at times, proven to be more volatile than bitcoin. Turkey’s inflation rate surpassed 83% in 2022 and is around 67% currently.

Due to this, over 4.8 million (5.6%) of the population choose to hold crypto.

Turkey makes up 6.6% of the web traffic to Binance, and mining operations may be slightly cheaper, with an average cost of $39,060 per Bitcoin.

Canada is eighth in this ranking for crypto adoption. 7% of the nation currently hold crypto, and there are 1,204 searches for crypto-related keywords every month per 100,000 of the population.

Canada is also responsible for 8.4% of website traffic to Kraken.

Singapore ranks ninth for crypto adoption. Having earned a reputation as one of the key financial centres in the world, it is unsurprising that Singapore has begun to establish itself as a global cryptocurrency hotspot.

[Featured Image by Kanchanara: Credit]

Naira’s value has been steadily dropping, and the government is pointing fingers at cryptocurrency as a culprit. 

This has led to a tense challenge between crypto platforms and Nigerian authorities, with the former leaving the Nigerian market altogether.

The Nigerian Securities and Exchange Commission (SEC) recently met with major crypto players, urging them to stop peer-to-peer (P2P) trading using the naira. The SEC blames P2P activity for manipulating the naira and contributing to its depreciation.

Following these warnings, KuCoin, the latest to exit, has joined OKX and Binance, which left the Nigerian market after a public dispute with the government.

The office of the National Security Adviser has heightened investigations of P2P trading, with regulatory bodies like the Economic and Financial Crimes Commission (EFCC), blocking thousands of accounts suspected of crypto activity. 

Fintechs and banks have also been instructed to close accounts linked to crypto trading and report them to the authorities.

Emomotimi Agama, the Director-General of the Nigerian Securities and Exchange Commission (SEC), has spoken on concerns about the impact of P2P trading on the exchange rate of the Naira, linking it to the depreciation of the national currency.

Despite these regulatory measures, the depreciation of the Naira continues, with the USD reaching a record high exchange rate of ₦1520 as of May 14, reiterating the ongoing challenges in the country’s currency stability.

These measures are causing frustration among Nigeria’s young generation, a demographic heavily invested in cryptocurrency. 

For many, crypto is an investment opportunity or even a source of income through remote work with foreign companies paid in stablecoins like USDT. P2P trading allows them to convert these stablecoins back to naira.

5-year highlights

Since its founding in 2017, KuCoin has expanded from its original seven co-founders to a highly effective team of over 1,000 people across the globe, scaling 142 times. The exchange currently serves 20 million crypto users across more than 200 countries. Along with the rapid growth in the number of users, the cumulative trading volume of the KuCoin platform has exceeded $2 trillion, with the highest single-day trading volume exceeding $30 billion.

As the number one altcoin exchange, the platform supports more than 700 coins and 1200 trading pairs, providing users with a wealth of investment targets and options. In addition, KuCoin has built one of the largest crypto communities in the world, supporting 23 languages and over 1 million community members. KuCoin is currently one of the top 5 crypto exchanges, according to CoinMarketCap. In 2022, The Ascent and Forbes named KuCoin the Best Crypto App for enthusiasts and one of the best crypto exchanges of 2022 respectively.

User-centric approach

To meet the needs of various users and provide a better trading experience, KuCoin has been continuously enriching its product line. Together with its Trading Bot automatic trading function, KuCoin offers Spot Grid, Dollar-Cost Averaging (DCA), Futures Grid, Smart Rebalance, and Infinity Grid products. In 2022, KuCoin futures broke into the list of top 5 Global Futures Exchanges with its peak daily trading volumes surpassing $10 billion.  And KuCoin Pool also became the world’s top 10 largest Bitcoin mining pool, having increased its computing power by 500% in 2022.

KuCoin is also continuing to expand its efforts in Web3 with the release of Wonderland – an interactive NFT launch platform designed for crypto and traditional games. Another recent product is Windvane – a one-stop and inclusive decentralized NFT marketplace that supports mainstream NFT blockchains. The KuCoin Wallet flagship product was officially launched in June to provide users with a secure and convenient multi-chain crypto wallet.

Making crypto mainstream

Globalization has always been one of KuCoin’s core policies, earning it the title of the “People’s Exchange.” In light of changing market realities, KuCoin is planning to launch the long-term “Glocal (Global + Local)” strategy, foreseeing the establishment of regional headquarters in Bangkok, Hong Kong, Dubai, and other regions. About 200 new positions will be opened in Hong Kong, Bangkok, Singapore, and Dubai at the first “Glocal” stage.

Protecting the interests of users is a top priority for KuCoin, forcing the exchange to adjust to the operational environment and related regulations. The exchange’s experts are currently finalizing a flexible strategy that meets current realities, one that will allow the company to support all users, giving them free and unrestricted access to digital assets.

Commemorative events

KuCoin will launch a series of events starting from September 28, 2022, to thank users for their support. The events include trading campaigns, Buy BTC/ETH/KCS with a 10% discount, 5th Anniversary Limited Edition NFTs, and more.

The release of Mystery Boxes is one of the planned events. Owning any one of the boxes of two different rarity levels gives users a chance to be whitelisted on the Windvane Launchpad.

Another is the My Crypto Story with KuCoin event, which allows users to write down their stories about crypto by October 11 to share a total prize pool of $20,000. The user with the highest number of votes will win up to $2,000. In addition, those who participate in the voting will have the opportunity to share a $5,000 prize pool.

Lastly, the KuCoin Community Chain (KCC) will jointly hold KCC Beowulf – the first major Web3 event together with KuCoin Wallet and Windvane. KCC Beowulf is a 7-week interacting activity with more than 20 projects deployed on KCC, including decentralized exchanges (DEX), lending protocols, wallets, cross-chain bridges, and Web-3.0 protocols, participating.

Onwards

The KuCoin exchange is delighted to share such a moment with its users and is proud to have come the long path to global scaling built on trust, security, user-centricity, and innovation. KuCoin will continue to develop and provide more opportunities for its users to explore Web3 space for years to come.