Nigeria EFCC Admits Risks Associated With Crypto, Calls For Regulation

• The Economic and Financial Crimes Commission (EFCC) has cautioned that Nigeria is at risk of facing abuse if cryptocurrency activities are not properly regulated.
• SiBAN president, Obinna Iwuno showed his readiness to collaborate with regulators for proper regulation.

The body responsible for regulating financial crimes and all matters relating to finance in Nigeria (EFCC) has come out to share its concern about the dangers of leaving cryptocurrency trading and other related activities unchecked in Nigeria.

According to the post shared by the local news, the Executive Chairman of the Economic Financial Crimes Commission (EFCC), Ola Olukoyede, speaking through his senior Chief of Staff, Michael Nzekwe, said that the nation could be at risk of facing abuse of its financial system if all forms of cryptocurrency adoption continue to operate without proper oversight.

The executive chairman shared all this in a meeting with members of the Blockchain Technology Association of Nigeria (SiBAN) at the EFCC headquarters in Abuja.

Also Read: Ethereum Price Holds Steady As Foundation Transfer Sparks Market Attention

The Risks Associated With Crypto in Nigeria and SiBAN’s Possible Remedy

During the course of the round table meeting, the representative shared that Nigeria as a whole is currently at risk of facing massive abuse of its financial system if cryptocurrency continues to operate without proper oversight.

According to him, cryptocurrency as a form of financial empowerment has been one of the biggest contributions of modern innovation, especially in regard to its contribution to wealth creation and means of investing, but with all of its great attributes, when placed in the wrong hands, it becomes a tool to promote and sponsor illegal practices like fraud and money laundering.

Olukoyede, executive chairman, even explained further that the regulations he proposes to be put in place would be beneficial for both investors and the economy. He pointed out that so far, there has been a thin line between genuine operators and fraudsters, and due to this corrupt public officials and supposed legitimate actors continue to exploit crypto for illegal purposes.

He urged the Blockchain Technology Association of Nigeria (SiBAN) and other stakeholders to support regulators by promoting compliance and education for investors while also reporting dishonest players.

The SiBAN president, Obinna Iwuno, showed a positive response to the chairman and emphasized that the group is ready to partner with regulators. He also explained that the association has created a code of ethics based on the standards of other countries of the world that had adopted cryptocurrency and has been advocating for proper regulation since 2018 to prevent capital flight.

Iwuno also noted that SiBAN already requires Know Your Customer (KYC) measures for crypto-based platforms in order to help promote accountability with these platforms. He agreed that rules are essential for investor protection and economic stability but warned that they should not hinder innovation.

Also Read: Ethereum ETFs Experience 4 Days of Outflows; Optimism Remains Strong