Nigeria Banks Vs Crypto: P2p Trading

I have been asked severally how I swap my crypto for cash as a Nigerian. The simple answer is PEER TO PEER TRADING. However, the process is annoying, complicated, and full of risks.

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In early 2021, The central bank of Nigeria, CBN created a crypto regulation that prevented financial institutions (Banks) from authorizing crypto use. This came as a surprise to everyone including me because I saw no reason why a country like Nigeria would fight crypto. It is important to note that crypto is not illegal in the country, the regulation only means that banks can not enable crypto transactions.

Undoubtedly, Nigerians are a very smart set of people and it took a very short time to find a loophole to exploit.

P2P Trading

Before I go over the problems associated with this loophole, I would like to explain what peer-peer trading means. In simple terms, it involves the exchange of crypto directly between two or more persons without the involvement of a central body.

If the government can't interfere, does it mean we are safe?

Well, p2p trading has benefited everyone as the crypto dream lives on in the country however, there have been so many reported cases of scams.

Oh noes: Look out for its regulation!

The last bastion of regulation comes from turning crypto into fiat and fiat into crypto. However, even if this problem doesn't get solved, it eventually just goes away by itself once vendors accept crypto directly at the beginning of the mainstream adoption phase. If anyone can buy anything with crypto direct... doesn't matter if there are heavy regulations on fiat/crypto trades, does it? These boundaries will eventually be completely shattered in a flood of adoption.

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Can we Avoid These Scams

When p2p became a thing, we first relied on telegram group chats and WhatsApp group chats to buy and sell crypto based on TRUST (people still do till now), Then exchanges came around. Currently, there are more than 15 p2p exchanges in Nigeria, the most popular being Binance.

How does Binance P2p work?

Place an Order
Once you place a P2P order, the crypto asset will be escrowed by Binance P2P.
Pay the Seller
Send money to the seller via the suggested payment methods. Complete the fiat transaction and click "Transferred, notify seller" on Binance P2P.
Get your Crypto
Once the seller confirms receipt of money, the escrowed crypto will be released to you.

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Now, Here Comes the Issue

You might be wondering, what happens if the seller doesn't confirm the receipt of the money? Will your asset be released to you?

Cases like this occur frequently and are usually resolved by the binance p2p customer agents. However, since they are humans, it usually involves a lot of time with manual checks like asking for transfer receipts, bank statements, and evidence that the money has not been reflected.

Sometimes these cases might be a result of the bank network during funds transfer.

It is usually frustrating for both parties because the asset will be frozen till the case is resolved.

I once had a case linger for 24 hours!

In Conclusion...

I would write more on this topic in another article. I sincerely hope for a better relationship between the Nigerian bank and crypto to avoid these p2p troubles

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