Nigeria is now Africa’s largest P2P Bitcoin market as CBN ban fuels crypto rush

According to data from UsefulTulips, Nigeria ranks first as the leading P2P Bitcoin trading country in Africa in terms of the volume of bitcoins traded, followed by Kenya, Ghana, and South Africa. Between January and March (Q1 2021), Nigeria posted a P2P Bitcoin trading value worth $99.1 million, surpassing Kenya’s $38.4 million, while Ghana and South Africa rounded up the top 4 with $27.4 million and $25.8 million, respectively.

Further data from UsefulTulips reveals that the number of P2P bitcoins traded in Nigeria has been rising steadily since February, peaking in March, as traders continue to bypass CBN’s restrictions. With the CBN’s position on cryptocurrencies, crypto exchanges in Nigeria as Remitano and Paxful, among several others, got a new lease of life as they witnessed a spike in trading volumes and unique signups.

Interestingly, after Nigeria, South Africa ranked second as one of Africa’s leading Bitcoin trading countries in 2020. However, in Q1 2021, Kenya and Ghana have already eclipsed South Africa in P2P Bitcoin trading value.

According to insider research, crypto trading in South Africa has taken a nosedive following draconian regulations enforced by financial authorities after a $740 million bitcoin scam (the largest crypto Ponzi scheme of 2020 in the world) was coordinated by the now liquidated Mirror Trading International (MTI).

As part of the new regulations, South Africans who have bought cryptocurrencies in recent years will be audited by the South African Revenue Service (SARS) and provide letters from trading platforms confirming the investments.

The country’s Financial Sector Conduct Authority is also making proposals to regulate trading in cryptocurrencies such as Ethereum, XRP and Litecoin, thereby relinquishing South Africa’s autonomy and reducing its market appeal to investors.