Nigeria urged to regulate cryptocurrency to control financial crimes.
According to Adedeji Owonibi, the founder of A&D Forensics, a Nigerian blockchain intelligence service provider, the Nigerian government needs to regulate cryptocurrency activities to curb financial crimes.
Owonibi mentioned this on February 9 at a Blockchain and Digital Forensics Company Training for Crypto Command Specialists. He pointed out that the lack of regulation in the Nigerian crypto space allows various practices to go unchecked. he said:
“Nigeria should fully regulate cryptocurrency activities in the country and make laws for that because without laws there is no crime.”
Despite the recent lifting of the ban on crypto trading by the Central Bank of Nigeria (CBN) allowing banks to open accounts for Virtual Asset Service Providers (VASP), Owonibi disclosed that the Compliance Specialist training is aimed at helping banks comply with the relevant laws. Their relationship with VASPs.
In the interview, Owonibi emphasized the need for Nigerian financial institutions to use the services of compliance specialists to ensure that all funds passing through their exchanges are not funds used for criminal activities.
Exciting update from Champion News on 3CS training!
A&D Forensics Completes Training of New Cryptocurrency Compliance Specialists
Read insights from our facilitators and participants here! #Nigerian trainings
— A&D Forensics (@ForensicsD) February 10, 2024
Compliance laws are designed to stop bad actors from using checks as a conduit for financial institutions such as banks to launder funds and commit other criminal activities.
The central bank has banned banks and other financial institutions from opening accounts for cryptocurrency service providers. The directive was issued to all banks and financial institutions on December 22, 2023, outlining the conditions for opening accounts with virtual asset providers.
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Owonibi said banks should ensure that the virtual assets service providers they open accounts with are compliant exchanges, preventing them from being channels for money laundering, drug sales or global financing of terrorism.
Noting that the Nigerian government is training some law enforcement agents as compliance specialists, Owonibi said the government needs to do more to ensure that all security officials are well trained to fight financial crimes.
However, the CBN has issued guidelines allowing virtual asset service providers, including cryptocurrency and crypto asset firms, to open accounts with banks in Nigeria.
Despite the lifting of the CBN Bank ban, local crypto analysts have advised the Nigerian Securities and Exchange Commission (SEC) to revisit the crypto licensing requirements and guidelines for virtual asset service providers to allow local crypto exchanges to operate in the country.
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