Techeconomy had reported about The IMF’s recommendation that global cryptocurrency trading platforms should be registered or licensed in Nigeria and subject to regulatory requirements. 

The Body made this recommendation, in the recent staff country report for Nigeria, warning that the rapid growth of foreign exchange (FX) trading platforms in Nigeria poses new challenges to the country’s financial stability.

The IMF also noted that Nigerian authorities took significant steps at the end of February to address issues surrounding cryptocurrency trading platforms.

The report read: “Staff recommends that global crypto trading platforms be registered or licensed in Nigeria and subject to the same regulatory requirements applicable to financial intermediaries following the principle of same activity, same risk, and same regulation.”

The IMF also urged Nigerian authorities to strengthen anti-money laundering and combating the financing of terrorism (AML/CFT) preventive controls on crypto trading platforms.

It emphasized the need for effective risk-based supervision of these platforms and other virtual asset service providers.

During discussions with the IMF team, the Nigerian authorities noted the need to stabilize the FX market through critical reforms.

Acknowledging mounting pressure on the exchange rate due to illicit flows via crypto platforms, the authorities highlighted the significance of maintaining external stability.

They pointed out that recent reforms and efforts to attract FX liquidity, including a mandate requiring international oil companies to hold 50% of repatriated oil receipts in Nigeria for 90 days, were designed to achieve this goal.

The Nigerian government admitted that illicit flows through cryptocurrency platforms are exerting undue pressure on the exchange rate.

Consequently, the authorities have moved to implement stricter controls on crypto platforms and reinforce compliance with existing FX regulations.

The report read:

“The authorities agreed with the importance of maintaining external stability and emphasized that the reforms which they have implemented as well as efforts to bring in FX liquidity—including the requirement for international oil companies to hold 50 percent of repatriated oil receipts in Nigeria for 90 days—are geared towards that end. They see pressure on the exchange rate now coming from illicit flows, including through crypto asset platforms, and not being driven by fundamentals, noting that some ceilings on FX access are intended to curb abuse.”

For instance, South Africa was reported to lead the way in cryptocurrency regulation by licensing approximately 60 digital-asset platforms, positioning itself as one of the first nations on the continent to mandate permits for crypto exchanges.

With Nigeria accounting for about 66.8% of the Africa’s cryptocurrency interest, the Office of the National Security Adviser (ONSA) classified cryptocurrency trading as a national security issue.

Also, the Central Bank of Nigeria (CBN) directed four fintech startups operating in the country—Opay, Moniepoint, Paga, and Palmpay—to block the accounts of customers engaging in cryptocurrency transactions and to report those transactions to law enforcement agencies. [The fintech companies have now been allowed to resume new customer onboarding].

More so, around February this year, crypto trading platform, Binance, had to disable its peer-to-peer feature for Nigerian users as it came under the searchlight of the Nigerian government over allegations of currency manipulation and money laundering.

Meanwhile, the Nigerian Securities and Exchange Commission (SEC), during a virtual meeting with the Blockchain Industry Coordinating Committee of Nigeria (BICCoN), called for a new cryptocurrency measure that aims to remove the naira a currency pair from cryptocurrency peer-to-peer platforms.

Commenting on this development, particularly by the recommendations by The IMF, Ray Youssef, the NoOnes’ CEO, said:

“The strategy adopted by Western institutions, particularly in Africa’s largest economy, could inhibit Nigerian fintech innovation. This approach mirrors regulatory frameworks like New York’s Bit License, which prompted a significant departure of talent and capital from both New York and the broader United States. Such policies could undermine the vibrancy of Nigeria’s sector, notably in the thriving P2P crypto markets that have introduced substantial liquidity.

There’s a possibility of facing restrictive measures similar to those associated with Central Bank Digital Currencies (CBDCs), which have been widely resisted in Nigeria due to a preference for decentralized alternatives like P2P Bitcoin and other cryptocurrencies. It is crucial for the continued evolution of P2P platforms, as they are key to unleashing the potential of Pan-African Trade.”

NoOnes is a fast-growing African crypto marketplace with over 400,000 users across its largest markets, including Nigeria, Cameroon, Ghana, India, and the Philippines.

Despite launching just last year, NoOnes has seen impressive growth with over 200,000 app downloads and Ray brings over 20 years of experience in building peer-to-peer focused businesses.

The Nigerian government had through the apex bank recently blocked the online platforms of Binance, OctaFX, Coinbase and others to avert what it considers continuous manipulation of the forex market and illicit movement of funds.

Meanwhile, the CBN had in December 2023 reviewed its position on the ban on cryptocurrency transactions in Nigeria.

This was contained in a circular dated December 22, 2023, with reference number FPR/DIR/PUB/CIR/002/003, and signed by Haruna Mustafa, the Director, Financial Policy and Regulation Department, in which the apex bank stated that “current trends globally showed the need for crypto regulation”.

Then, CBN said it had changed its stance on crypto assets in the country and asked banks to disregard its earlier ban on crypto transactions.

But, yesterday, Dr. Cardoso, Nigeria’s Central Bank Governor, justifying the crypto exchange restrictions, stated that about $26 billion passed through Binance Nigeria in the last one year.

He dropped this hint in response to the questions on the activities of cryptocurrency platforms like Binance, especially how the apex bank thought about balancing currency manipulation and not stifling innovation.

Cardoso argued that the cryto exchange restrictions were based on the fact the CBN has a responsibility to protect Nigerians (and investment community).

However, a crypto expert, Ray Youssef, the CEO of NoOnes, the financial communication super app connecting people of the Global South to the world’s financial systems, has argued that the CBN should take a fearless bet on the potential of the Nigerian youth and total potential energy of the economy would inspire Africa and the world.

His comment reads:

“Africa is the most over regulated region in the world and this is directly relational to poverty and stagnation, especially when governments do it with an unsteady frantic footing.

“No nation has ever escaped this inflationary death spiral and like quicksand the more frantic the moves the faster you sink.

“There is still a chance for Nigeria to escape and set a precedent for all others to follow.

“A fearless bet on the potential of their youth and total potential energy of their economy would inspire Africa and the world. The Nigerian people have rejected CDBC’s and embraced Bitcoin as a medium of exchange and lead the world in adoption, putting all your bets on black is the winning bet. We at NoOnes invite the government to an official dialogue.

“We advocate for the youth and a Pan African Renaissance starting with fixing the money problem first.

“There is a win win win here, the only losers will be those who want the entirety of Africa suppressed. This is our time and this time it shall be different!”

The launch follows the announcement NoOnes’ official launch as Youssef is expected to champion the startup’s audacious mission to achieve a billion daily active users of Bitcoin within the next seven years.

Founded in 2023, NoOnes was developed to empower the financial freedom of the Global South.

The platform enables users to move money freely and faster, without the friction and bottlenecks associated with legacy banking and financial institutions.

Its business ideology hinges on the belief that peer-to-peer is the world’s only true free market and that Bitcoin is the new global financial architecture poised to uplift the people of Africa, Latin America and South East Asia.

NoOnes’ biggest markets to date are Nigeria, Ghana, Cameroon, India and Philippines, accruing over 400,000 users worldwide to date, and achieving profitability within just under 4 months of operations.

The NoOnes app, available on Google Store, comprises three main components:

• A marketplace where users from 190 countries can buy or sell Bitcoin and stable coins with over 400 payment methods available (including gift cards, mobile money, bank transfers and other crypto currencies.) 
• A wallet which acts as a store of value 
• A messenger where the majority of peer-to-peer trades take place 

In addition to its wide spectrum of product features, which also includes an upcoming advanced wallet functionality that enables bill payment processing with top African vendors, NoOnes is also dedicated to optimising the user experience, particularly for customers of the Global South.

This focus involves removing constraints and enhancing accessibility through a simplified and seamless KYC onboarding process and the provision of a safe trading environment with a fast and effective localised dispute process.

Ray Youssef’s addition to the organisation brings with it a wealth of experience and insights across areas such as strategic planning, product innovation, growth hacking and operations management. As a seasoned entrepreneur, he brings years of insights to the organisation, having navigated the challenges of the startup landscape.

Prior to joining NoOnes, Youssef had served as the CEO of Paxful, USA, INC. a company he founded and led to unprecedented heights.

Youssef is also one of the brains behind Built with Bitcoin, a foundation that aims to build 100 communities across Africa, helping to improve the physical, mental, environmental and financial health of the underserved.

Speaking on his new role as CEO of Noones, Ray Youssef, stated;

‘It’s an honour to assume this position and get straight to work. For the past 8 years, I have fought for financial sovereignty for the Global South. Finally, I am glad to be able to fulfil the mission I began almost a decade ago. I’m confident that Bitcoin will play a crucial role in promoting the prosperity of our continent, and I’m thrilled and privileged to contribute to the company’s ambition and growth. Our first major goal will be to create an interoperable Pan-African clearing layer taking intra African trade from the single digits, to levels comparable to intra-European trade. Africa alone has the potential to make NoOnes a trillion dollar company but when you factor in the rest of the global south the sky’s the limit.”

As a co-author of the CivKit whitepaper – a decentralised open-source protocol for Civilization 2.0 – Youssef emphasises his commitment to financial inclusion.

He envisions Bitcoin playing a pivotal role in eradicating poverty and giving the Global South a rightful seat in the global financial conversation, fostering more trades and more wealth. NoOnes will be the first company to build on CivKit sharing its liquidity and welcoming new competitors to build a global free market together.

Youssef concluded, “The internet, mobile phones, and a wave of disruptive startups failed to truly disrupt money. At NoOnes, we believe that finishing Bitcoin is the way. New financial tools are creating unprecedented, borderless opportunities and these tools empower and will continue to empower the people in ways never seen before.”