Advancing Cryptocurrency Regulation in Nigeria: A Critical Necessity

Adedeji Owonibi advocates for Nigerian cryptocurrency regulation to fight monetary crimes and make sure the trade’s safety and scalability, addressing the complexities of monitoring illicit transactions.

The decision for cryptocurrency regulation in Nigeria has intensified, highlighting the pressing want to deal with monetary crimes, significantly cash laundering, throughout the burgeoning digital foreign money house. Adedeji Owonibi, the co-founder of A&D Forensics, has been on the forefront of this advocacy, emphasizing the position of regulation in curbing these illicit actions. His insights make clear the complexities and challenges of cryptocurrency transactions, underscoring the crucial for presidency intervention via regulation.

Owonibi’s stance on the matter is obvious; with out stringent regulation, the cryptocurrency sector in Nigeria stays a fertile floor for monetary malfeasance. He argues that the Nigerian authorities wants to ascertain complete legal guidelines governing cryptocurrency actions to discourage and mitigate the chance of cash laundering and different monetary crimes. This angle is especially related within the wake of the Central Financial institution of Nigeria (CBN) lifting its ban on crypto transactions, permitting banks to function accounts for Digital Asset Service Suppliers (VASPs)​​​​.

The significance of such regulation can’t be overstated, particularly contemplating Nigeria’s place as a major participant within the international cryptocurrency market. Regardless of earlier regulatory challenges, together with a ban by the CBN, cryptocurrency utilization in Nigeria has seen a outstanding surge. The nation ranks prominently in international crypto adoption indexes, pushed by components similar to restricted entry to conventional banking companies, foreign money depreciation, and inflation​​. This uptick in crypto exercise, nonetheless, additionally raises the specter of elevated monetary crimes, making the decision for regulation all of the extra essential.

Owonibi’s insights additionally spotlight the potential for regulatory frameworks to reinforce the safety and scalability of the crypto trade. He factors out the developmental regulation crafted by The Nationwide Info Expertise Improvement Company (NITDA) as a major step towards creating a good surroundings for blockchain and crypto trade progress. This transfer, in keeping with Owonibi, is what the CBN ought to have thought-about again in 2021 as a substitute of severing ties between cryptocurrency change corporations and native banks​​.

Moreover, Owonibi delves into the intricacies of monitoring and investigating cryptocurrency fraud, revealing that whereas Over-The-Counter (OTC) transactions and crypto mixers pose challenges to legislation enforcement, developments in regulatory expertise and worldwide cooperation are enhancing the flexibility to hint illicit actions. He emphasizes the evolving panorama of blockchain anonymity and the worldwide efforts to ascertain requirements for transaction traceability, underscoring the importance of regulatory measures in combating cryptocurrency scams​​.

Picture supply: Shutterstock

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