According to Cointelegraph: Adedeji Owonibi, the Co-founder of Nigerian blockchain intelligence service provider A&D Forensics, has urged the Nigerian government to enforce regulations on cryptocurrency activities to combat financial crimes, especially money laundering. Owonibi made this call during a cryptocurrency compliance specialists training organized by a blockchain and digital forensics firm on February 9th.
The lack of regulatory measures in Nigeria's cryptocurrency landscape has given room for several practices to go without supervision. Owonibi emphasizes that "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 offence.”
Following the Central Bank of Nigeria's (CBN) recent rescission of the ban on crypto transactions, banks have been allowed to operate accounts for Virtual Assets Service Providers (VASP). The training, according to Owonibi, will help ensure that banks comply with the relevant laws when interacting with VASPs.
He stressed the importance of compliance specialists in ensuring that money exchanged through financial institutions is not utilized for criminal activities. The guidelines regarding virtual asset providers were issued to all banks and financial institutions on December 22, 2023. Owonibi maintained that banks should only open accounts for compliant exchanges, hence avoiding use as conduits for money laundering, drug trafficking, or terror financing.
While acknowledging the government's efforts in training law enforcement agents as compliance specialists, he implored for more to be done in arming all security officers with the necessary skills to fight financial crimes.
Despite the CBN's lifted ban, local crypto analysts are urging the Nigerian Securities and Exchange Commission (SEC) to revisit the Virtual Asset Services Providers' guidelines. This revision would allow local crypto exchanges to acquire licences to operate in the country.