Coinbase Enhances Cryptocurrency Access in Nigeria with Onboard Global Partnership
Coinbase has partnered with Onboard Global to improve cryptocurrency trading in Nigeria, allowing users to buy digital assets with Naira via a peer-to-peer exchange. The initiative simplifies the process by not requiring ID for transactions under $100, aiming to increase accessibility. This move comes as Nigeria shifts towards more favorable regulatory conditions for cryptocurrency exchanges, facilitating Coinbase’s expansion plans in emerging markets.
Coinbase has announced a strategic partnership with Onboard Global to enhance cryptocurrency trading in Nigeria. This collaboration enables users to purchase digital assets using Naira through a peer-to-peer (P2P) exchange, resulting in increased accessibility and reduced costs. Notably, users making transactions under $100 will not require identification verification, facilitating entry into the cryptocurrency market for newcomers.
Despite earlier hesitance due to regulatory concerns, Coinbase is now making substantial advancements in Nigeria. Following government crackdowns in early 2024 on exchanges like Binance, which were blamed for the naira’s depreciation, the current leadership at Nigeria’s Securities and Exchange Commission (SEC) is now favoring regulatory frameworks rather than imposing outright bans. Two local exchanges have already secured operating licenses, signaling a positive shift towards regulatory clarity.
To mitigate risks associated with Nigeria’s dynamic regulatory environment, Coinbase has delegated user verification and P2P platform operations to Onboard Global. This ensures compliance with local regulations while allowing Coinbase to maintain a level of separation from direct regulatory oversight.
The integration of Base, an Ethereum-based layer-2 blockchain by Coinbase, promises to minimize transaction fees and offer access to over 540 additional tokens. Nigeria serves as a pilot for this model, which Coinbase aims to adapt for other promising emerging markets in the future.
The partnership significantly expands purchasing options for Nigerian users. Onboard Global is leveraging Onramper’s extensive network of liquidity providers, including Yellow Card, Coinify, and others, enabling users to fund accounts via bank transfers or purchase directly from P2P merchants.
Coinbase has articulated that Nigeria represents the initial phase of a wider payment infrastructure enhancement, with ambitions to extend Onboard Global’s services to over 50 additional countries in 2025, including Argentina, India, Indonesia, Kenya, the Philippines, and Turkey. This pivot toward emerging markets highlights Coinbase’s commitment to addressing the rising demand for cryptocurrency alongside ensuring compliance with local regulations.
In summary, Coinbase’s partnership with Onboard Global marks a significant advancement in cryptocurrency accessibility within Nigeria. By eliminating identity verification for small transactions and leveraging local partnerships, Coinbase aims to enhance user experience while navigating regulatory frameworks. This collaboration is not only pivotal for Nigeria but also sets the stage for expansion into other emerging markets, reinforcing Coinbase’s position in the global cryptocurrency landscape.
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