Nigeria’s Economic and Financial Crimes Commission Raises Concerns on Cryptocurrency
The head of Nigeria’s Economic and Financial Crimes Commission (EFCC), Ola Olukoyede, has raised urgent concerns about the potential risks associated with the unregulated cryptocurrency sector in the country. He characterized cryptocurrencies as a significant engine for innovation and wealth generation, yet he also highlighted their capacity to facilitate money laundering, terrorist financing, and various forms of fraud.
Call for Regulatory Oversight
Emphasizing the need for regulatory oversight, Olukoyede remarked,
“Crypto has emerged as the new oil, brimming with financial possibilities. However, without proper regulations, even the most genuine participants may face legal challenges.”
This statement points to a growing worry over how the current lack of regulation permits both legitimate businesses and unscrupulous entities to navigate the crypto landscape without accountability.
Collaboration for Investor Awareness
In a call to action, Olukoyede suggested that the Stakeholders in Blockchain Technology Association of Nigeria (SIBAN) and other blockchain entities should work together with the EFCC to equip investors with the necessary knowledge to recognize and report fraudulent activities.
“By collaborating to combat money laundering, stakeholders can act as whistleblowers. The more training and awareness we provide, the more robust our economic framework becomes,”
he stated.
SIBAN’s Commitment to Regulation
Responding to these warnings, Obinna Iwuno, SIBAN’s president, expressed the association’s commitment to supporting regulatory initiatives. He pointed out that SIBAN has long advocated for regulations since 2018 to avert capital flight and safeguard the Nigerian economy. Iwuno noted the establishment of a code of ethics aligning with international standards and the implementation of stringent compliance measures for digital asset platforms, including requiring operators to appoint dedicated compliance officers and adhere to know your customer (KYC) protocols.
Balancing Innovation and Regulation
However, Iwuno also indicated the importance of ensuring that regulations do not hinder innovation in the crypto space. He conveyed optimism about the prospect of a strong alliance with the EFCC, aimed at nurturing the country’s youthful population’s capacity for creativity while simultaneously shielding Nigeria from the risks of illicit financial activities. The goal is to achieve a balance where innovation can thrive without compromising the integrity of the nation’s financial systems.
