Nigeria Commands Large share of Africa Bitcoin P2P Trading Volume, South Africa Drops to 4th
April 12, 2021 1:52 PM
Peer-to-peer (P2P) in Africa has surged in recent times after contrasting regulatory requirements in the nation regarding digital assets.
New data reveals that Bitcoin trade volume in the P2P market in countries such as Kenya and Ghana reached new highs in Q1 of 2021, with both countries ranked just behind Nigeria.
However, South Africa who occupied the second spot in 2020 has dropped off the pecking order in 2021 according to the data. The P2P market in Africa is booming with countries such as Nigeria embracing it after the CBN directives for financial institutions to stop servicing crypto business and exchange in the country.
Varying Regulatory Regimes a Major Boost to P2P Trades
Ghana and Kenya's recent surge in P2P trading volume could be linked to recent regulatory changes in respect to crypto trading in the country. For instance, the Central Bank of Ghana launched a new regulatory sandbox that prioritized blockchain-based companies could be a major reason P2P trading volumes went up.
South Africa P2P Trade Volume hits new Lows as Kenya and Ghana Record Growth
The South Africa crypto industry has been ravaged by crypto scam activities of late which prompted regulators in the country to issues warnings to retail crypto investors after the collapse of Mirror Trading International. According to data from Chainalysis, MTI was the biggest bitcoin scam in 2020.
However, the recent high volume of scams linked to cryptocurrency in the country has pushed the government to tighten regulations which include mandatory licenses and taxes accelerating investors' exit as they believe bitcoin trading in the country has its autonomy. With the market no longer appealing to investors, Bitcoin P2P trading volume in South Africa hits the floor.
Nigeria P2P Volumes Surge After Central Bank Directive
Meanwhile, in Nigeria, the data shows P2P volumes seem to have been boosted by the recent directive from the Central Bank of Nigeria (CBN) issued on February 6, restricting crypto companies' access to the banking system.
According to the data from Tulip, Nigeria's P2P Bitcoin trading volume surged to approximately $100 million which is two times more than second-placed Kenya.
During the quarantine period in 2020, many countries in Africa saw an increase in P2P bitcoin trading volume, the data reads.