Nigeria Urged to Introduce Crypto Regulations to Curb Financial Crimes
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Modified on: Mon, 12 Feb, 2024 at 12:31 AM
Adedeji Owonibi, co-founder of A&D Forensics, emphasized the crucial need for the Nigerian government to establish comprehensive regulations for cryptocurrency activities to combat financial crimes, particularly money laundering. Speaking at a cryptocurrency compliance training session, Owonibi highlighted that the absence of regulations allows various practices in Nigeria's crypto space to remain unmonitored. Despite the recent Central Bank of Nigeria's (CBN) decision to lift the ban on crypto transactions, ensuring banks' compliance with relevant laws in their interactions with virtual asset service providers (VASPs) is a key focus. The compliance specialist training aims to equip financial institutions with the tools to prevent their platforms from being used for criminal activities.
In a bid to address financial crimes, particularly money laundering, Adedeji Owonibi, co-founder of A&D Forensics, has underscored the critical necessity for the Nigerian government to institute comprehensive regulations governing cryptocurrency activities. Owonibi's remarks came during a cryptocurrency compliance training session, where he emphasized the urgency of introducing regulatory frameworks to monitor and regulate various practices within Nigeria's crypto space.
Despite the recent decision by the Central Bank of Nigeria (CBN) to reverse the ban on crypto transactions, allowing banks to operate accounts for virtual asset service providers (VASPs), the focus remains on ensuring strict compliance with relevant laws. The compliance specialist training seeks to empower financial institutions, ensuring that their platforms are not utilized for illicit activities.
Owonibi stated that Nigeria must establish clear laws and regulations for cryptocurrency activities within the country, emphasizing that the absence of such regulations creates a regulatory vacuum. He stated, "Nigeria should completely regulate cryptocurrency activities within the country and set out laws to that effect because if there is no law, there is no offense."
The co-founder of A&D Forensics stressed the importance of compliance specialists in assisting banks to adhere to the necessary regulations in their interactions with VASPs. Compliance laws act as essential checks to prevent financial institutions from being used as gateways for money laundering, terrorism financing, and other criminal activities.
While acknowledging the efforts made by the Nigerian government, particularly in training law enforcement agents as compliance specialists, Owonibi emphasized the need for continuous training to enhance their capacity to combat financial crimes effectively.
Despite the CBN's decision to lift the ban on banks operating accounts for cryptocurrency service providers, local crypto analysts have advised the Nigerian Securities and Exchange Commission (SEC) to revisit guidelines for virtual asset service providers. This move would enable local crypto exchanges to obtain licenses and operate within the regulatory framework set by the government.
The regulatory landscape in Nigeria's crypto space is evolving, and the emphasis on compliance and training reflects a commitment to ensuring that the sector operates transparently, responsibly, and free from illicit activities. The introduction of robust regulations will not only provide clarity but also contribute to the overall growth and legitimacy of the cryptocurrency industry in Nigeria.
(AMAKA NWAOKOCHA, COINTELEGRAPH, 2024)
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