Cryptocurrency wallet provider, Coinbase, introduces Peer-to-Peer (P2P) integration for users to buy digital coins using their local currency.

Cryptocurrency wallet provider, Coinbase, introduces Peer-to-Peer (P2P) integration for users to buy digital coins using their local currency.

In the bustling crypto landscape of Nigeria, Coinbase Wallet is making its mark with a new non-custodial P2P service. This move comes amidst a complex regulatory environment and stiff competition from established local and international crypto exchanges.

The regulatory landscape in Nigeria has tightened significantly, with cryptocurrencies now classified as securities under the Investment and Securities Act. This classification brings stricter compliance requirements for crypto firms, including licensing by the Nigerian Securities and Exchange Commission (SEC) and integration of tools like Chainalysis for transaction monitoring. The capital threshold for crypto licenses is set at ₦500 million.

Despite these challenges, Coinbase is entering this market with a focus on security and seamless conversion of crypto assets to Nigerian Naira. The platform's model allows users to convert crypto like USDT to Naira directly and quickly, supporting use cases like freelancing payments and cross-border remittances without the risk of centralized custody.

Coinbase's entry into the Nigerian market is not without competition. Established players like Binance, Paxful, YellowCard, and others already offer trusted, fast, and secure crypto-to-Naira conversions and have tailored services to Nigerian users’ preferences. However, Coinbase's emphasis on user funds safety and ease of converting crypto to local currency could provide a compelling alternative.

Users can buy crypto on Coinbase Wallet without KYC for transactions under $100, expanding access within regulatory limits. The platform aims to expand into Kenya and more than 50 other countries in the next 12 months.

The partnership with Onboard Global, a leading P2P exchange platform, is key to Coinbase's Nigerian expansion. Onboard acts as an escrow between buyers and agents in the region on the P2P platform. Through this partnership, Coinbase Wallet will facilitate crypto purchases, with Onboard handling verification and providing a secure P2P exchange platform.

The partnership was announced by Yele Bademosi, CEO of Onboard, via a tweet. The platform's aim is to make crypto more accessible to Africans, who have faced challenges with crypto-to-fiat conversion due to limited, complex options from global decentralized platforms.

In Nigeria, forex and central bank restrictions made card purchases for crypto nearly impossible, pushing users to rely on P2P exchanges for stablecoins. This partnership could provide a much-needed solution for Nigerian users, offering a secure and efficient way to buy and sell crypto.

As Coinbase navigates the regulatory challenges and competes with established players, the impact on Nigeria's P2P crypto scene could be significant. The introduction of a regulated, secure alternative that prioritizes user funds safety and ease of converting crypto to local currency could reshape the market. However, success will depend on Coinbase's ability to gain market trust and navigate the complex regulatory environment.

1. In the midst of a complex regulatory environment, Coinbase is entering Nigeria's crypto landscape with a new non-custodial P2P service.
2. The regulatory landscape in Nigeria has classified cryptocurrencies as securities, bringing stricter compliance requirements for crypto firms.
3. Coinbase is focusing on security and seamless conversion of crypto assets to Nigerian Naira, supporting use cases like freelance payouts and cross-border remittances.
4. Despite stiff competition from established players like Binance, Paxful, and YellowCard, Coinbase's emphasis on user funds safety and ease of converting crypto to local currency could provide a compelling alternative.
5. Coinbase is expanding its services through a partnership with Onboard Global, a leading P2P exchange platform, to facilitate crypto purchases, with Onboard handling verification and providing a secure P2P exchange platform.
6. This partnership could provide a much-needed solution for Nigerian users, offering a secure and efficient way to buy and sell crypto, given the existing challenges with forex and central bank restrictions on card purchases for crypto.

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