The Nigerian government has been urged to create rules for cryptocurrency to help stop financial crimes like money laundering. Adedeji Owonibi, a Nigerian blockchain company A&D Forensics founder, highlighted this need during a training session for people specializing in ensuring cryptocurrency businesses follow the law.
Owonibi explained that without proper rules, many activities in Nigeria’s cryptocurrency market are not checked:
“Nigeria should make rules to control cryptocurrency activities in the country because, without laws, no actions can be considered wrong.” Even though the Central Bank of Nigeria (CBN) recently allowed banks to handle accounts for companies dealing with virtual assets, Owonibi mentioned that training compliance specialists are crucial for banks to follow the proper laws when dealing with these companies.
In a discussion, Owonibi stressed that banks need to work with experts to ensure the money going through exchanges is not used for illegal activities. These laws prevent criminals from using banks to clean their dirty money or fund other unlawful acts.
Before, the central bank stopped banks and financial institutions from providing services to cryptocurrency companies. However, on December 22, 2023, the central bank gave new rules that allow these companies to have bank accounts under certain conditions.
Owonibi pointed out that banks need to check that the companies they provide services follow the rules so they don’t end up helping with money laundering, drug trafficking, or terrorism financing.
He also mentioned that the Nigerian government has started training some law enforcement officers to be compliance specialists. Still, more effort is needed to ensure all officers are equipped to fight financial crimes.
Despite the central bank being more open, local cryptocurrency experts suggest that the Nigerian Securities and Exchange Commission update the rules for these companies so local cryptocurrency exchanges can get licenses to operate in Nigeria.
