Expert Highlights Urgent Need for Crypto Regulation in Nigeria

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Adedeji Owonibi, Co-founder of A&D Forensics, a blockchain intelligence service provider in Nigeria, emphasizes the importance of cryptocurrency regulation in combating financial crimes, specifically targeting money laundering.

Implementing effective regulatory measures is crucial to safeguarding the integrity of the financial system and ensuring a secure environment for cryptocurrency transactions.

During a training session for crypto compliance professionals held on February 9th, Owonibi raised an important point at a Blockchain and Digital Forensics firm. He highlighted the unchecked nature of numerous activities within Nigeria’s crypto industry, emphasizing the need for legislation to address this issue.

He said:

“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 Importance of Compliance

Crypto Regulation in Nigeria

Owonibi emphasized the importance of compliance specialist training, which aims to ensure that banks adhere to all relevant laws while engaging with virtual asset service providers (VASPs). This holds even after the Central Bank of Nigeria (CBN) reversed its ban on crypto transactions, granting banks the ability to establish accounts for VASPs.

During an interview, Owonibi emphasized the crucial role of compliance experts employed by Nigerian financial institutions in preventing the laundering of illicit cash. These experts play a vital part in safeguarding banks and other financial institutions from being exploited by criminals for money laundering and other illicit activities.

Compliance regulations are implemented to ensure that such behavior is detected and prevented effectively, thereby maintaining the integrity and security of the financial system.

Previously, financial organizations were forbidden by the central bank from holding client accounts with crypto service providers. On December 22, 2023, comprehensive instructions were issued to all banks and financial institutions, outlining the specific requirements for virtual asset providers to establish accounts.

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Disclaimer: The information in this article should not be considered anything as financial advice, and the OvenAdd platform is intended only to provide educational and general information. Please consult with a financial advisor before making any investment decisions.

Praveen got into the world of cryptocurrency in 2017 by trading and investing. With a wealth of experience managing various crypto-related projects, Praveen is deeply passionate about all aspects of cryptocurrency, blockchain, Metaverse, and NFTs.