Adedeji Owonibi, co-founder of Nigerian blockchain intelligence service provider A&D Forensics, emphasizes the necessity for the Nigerian government to regulate cryptocurrency activities to combat financial crimes, particularly money laundering.
Owonibi highlights the lack of regulations in Nigeria’s crypto space, which allows various practices to occur without proper monitoring. He asserts that the absence of laws governing cryptocurrency activities creates a loophole for illicit activities.
Despite the Central Bank of Nigeria’s (CBN) reversal of the crypto transaction ban, allowing banks to operate accounts for virtual assets service providers (VASPs), Owonibi stresses the importance of training compliance specialists to ensure banks adhere to relevant laws in their dealings with VASPs.
Owonibi emphasizes the role of compliance specialists in verifying that funds passing through exchanges are not utilized for criminal purposes. Compliance laws serve as safeguards against money laundering and other illicit activities, preventing financial institutions from being used as channels for illegal transactions.
While acknowledging the government’s efforts in training some law enforcement agents as compliance specialists, Owonibi suggests the need for further training to equip all security officials with the necessary skills to combat financial crimes effectively.
Local crypto analysts urge the Nigerian Securities and Exchange Commission to review guidelines for VASPs, enabling local crypto exchanges to obtain licenses and operate legally within the country. This move would provide regulatory clarity and promote transparency in the cryptocurrency sector.
Get $200 Free Bitcoins every hour! No Deposit No Credit Card required. Sign Up