KuCoin has temporarily suspended peer-to-peer trading involving the Nigerian Naira due to compliance obligations.

KuCoin has temporarily suspended all naira-based peer-to-peer (P2P) trading in response to heightened regulatory scrutiny from Nigerian authorities. This move follows a meeting between the Securities and Exchange Commission (SEC) and industry players, where P2P trading was urged to cease.In a blog post, KuCoin notified its users of the temporary suspension of P2P naira services and Fast Buy service via Naira card, citing ongoing efforts to enhance their services. The exchange's decision to halt P2P trading appears to be an attempt to avoid regulatory violations following recent federal charges faced by another major exchange, Binance.The Nigerian government has intensified its scrutiny of P2P cryptocurrency trading, instructing fintechs and banks to close bank accounts associated with trading and report such accounts to the authorities. The Economic and Financial Crimes Commission (EFCC) has also taken action by blocking thousands of accounts involved in crypto trading.During a meeting on May 7, the SEC's Director-General, Emomotimi Agama, expressed concerns about the negative impact of P2P crypto trading on the exchange rate of the naira. Despite these measures, the naira continues to face challenges, falling to N1,520 per Dollar at the parallel market on Monday.Binance CEO Richard Teng accused a Nigerian government official of pressuring the exchange to accept a secret agreement to settle Nigeria's claims, claiming the agreement involved a $150 million bribe. Nigeria responded by denying any such bribery attempt, claiming Binance's accusation is a diversionary tactic.Binance recently discontinued all services involving the Nigerian local fiat currency, the Nigerian naira (NGN), following regulatory scrutiny. Earlier, the Nigerian government imposed a $10 billion fine on Binance as part of a crackdown on the platform. Binance has faced increasing regulatory scrutiny worldwide, with charges filed in both the US and the Commodity Futures Trading Commission (CFTC).