Coinbase has partnered with Onboard Global to enhance cryptocurrency trading in Nigeria. This initiative allows users to buy assets in Naira through a peer-to-peer exchange, simplifying ID verification for transactions under $100. With evolving regulatory frameworks, Coinbase aims to expand its offerings in emerging markets, starting with Nigeria and moving to other countries by 2025.
Coinbase has secured a partnership with Onboard Global to facilitate cryptocurrency trading in Nigeria. This collaboration allows users to purchase digital assets using Naira through a peer-to-peer (P2P) exchange, enhancing accessibility and reducing costs. A noteworthy aspect of this initiative is the relaxation of ID verification for transactions below $100, which significantly simplifies entry for newcomers in the crypto market.
Previously, Coinbase had been cautious about entering Nigeria due to regulatory uncertainties. The situation became more complex in early 2024 when the Nigerian government enforced restrictions on major global exchanges like Binance, attributing these to the depreciation of the Naira. However, with new leadership at Nigeria’s Securities and Exchange Commission (SEC), the regulatory environment is shifting towards compliance rather than outright prohibition.
To navigate the intricate regulatory landscape, Coinbase has strategically passed the risk to Onboard Global, which will manage user verification and oversee P2P trading while ensuring adherence to local laws. This framework allows Coinbase to remain distanced from direct regulatory oversight, facilitating smoother operations.
The integration of Base, Coinbase’s Ethereum-based layer-2 blockchain, plays a crucial role in this venture as it minimizes fees and expands access to over 540 additional tokens. Nigeria is being utilized as a pilot project, with plans for expansion into other promising emerging markets in the future.
Additionally, this partnership enhances cryptocurrency purchasing options for Nigerian users, who will have access to resources from Onboarder’s extensive network of liquidity providers such as Yellow Card and Coinify. Users are presented with diverse funding methods, including bank transfers and purchases from P2P merchants, opening doors to crypto engagement.
Coinbase has indicated that Nigeria’s market will serve as the first of many to benefit from this synchronized payment infrastructure. Onboard Global already aims to extend these services to over 50 additional markets globally in 2025, including countries such as Argentina, India, Indonesia, Kenya, the Philippines, and Turkey. This strategic pivot positions Coinbase well within the growing demand for cryptocurrency in emerging markets, while effectively managing regulatory risks through local partnerships.
In conclusion, Coinbase’s partnership with Onboard Global marks a significant development in the Nigerian cryptocurrency landscape, enabling easier access and trading opportunities for users. The strategic move to alleviate regulatory risks while enhancing payment options signifies Coinbase’s commitment to expanding into emerging markets. As Nigeria navigates its regulatory environment, this collaboration sets the foundation for future growth and accessibility in cryptocurrency.
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