Quidax, a Nigerian cryptocurrency exchange operating under a provisional licence, has shut down its peer-to-peer (P2P) trading feature just five months after its introduction. The decision comes as regulators in Nigeria tighten oversight of digital asset markets and reassess the role of informal trading models under the country’s evolving framework for crypto licences.
The P2P marketplace allowed users to buy and sell cryptocurrencies directly with one another through verified merchants hosted on the Quidax platform. It was launched as a way to formalise a type of trading that has traditionally taken place off-platform, often settled through bank transfers and is hard to monitor.
Despite built-in safeguards, such as Level-3 know-your-customer checks, two-factor authentication, and merchant verification badges, the exchange said the feature would be retired to simplify its service lineup and focus on higher-demand options like instant swaps and order-book trading.
Quidax took part in the Nigerian Securities and Exchange Commission’s (SEC) Accelerated Regulatory Incubation Programme (ARIP), a sandbox aimed at helping digital asset startups align with capital market rules. Companies in the programme, including Quidax and its competitor Busha, were expected to transition to full licences by August 2025, a process that has since been paused as the regulator reassesses its readiness to supervise complex crypto activities.
Peer-to-peer trading has long been one of the most active parts of Nigeria’s crypto economy, but it has also drawn regulatory concern due to opaque transaction flows and off-platform settlements that can evade oversight. Officials have pointed to risks including exchange-rate manipulation and limited visibility into how trades are executed, especially when foreign platforms dominate the P2P environment without clear compliance with local rules.
As part of the platform adjustment, Quidax also said it will disable related functions such as its marketplace ads, merchant chat, and escrow services tied to the P2P feature, though the main exchange’s other services will continue operating normally. The move is viewed as a sign that regulators are prioritising products that fit within clearer supervisory frameworks, and that informal or loosely structured trading models may face stricter scrutiny going forward.
Analysts see this development as a test of Nigeria’s crypto sandbox initiative, demonstrating the balance regulators are trying to strike between fostering innovation and maintaining investor protection. Exchanges are now adjusting their offerings to align more closely with capital market structures as the industry awaits further clarity on full licensing requirements and the future regulatory framework for digital asset intermediaries.
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