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Nigeria needs crypto regulation to curb money laundering – Adedeji Owonibi

Bitcoin and Dash, Ripple, Monero, Litecoin in blurry closeup against piles of golden coins. Cryptocurrency meaning on market growth concept. 3D renderingBitcoin and Dash, Ripple, Monero, Litecoin in blurry closeup against piles of golden coins. Cryptocurrency meaning on market growth concept. 3D rendering

The Co-founder of A&D Forensics, Adedeji Owonibi, has said that the Nigerian government would need to regulate cryptocurrency activities to curb financial crimes, especially money laundering.

Owonibi stated this on Friday during a training organized for Cryptocurrency Compliance Specialists by the Blockchain & Digital Forensic firm. According to him, the absence of regulation in the crypto space in Nigeria is allowing all forms of practices to go unchecked.

Banks and VASPs

Against the recent lifting of the ban on crypto transactions, by the Central Bank of Nigeria (CBN), which allows banks to operate accounts for Virtual Assets Service Providers (VASP), Owonibi said the Compliance Specialist training was to ensure that banks are complying with the adequate laws in their dealings with the VASPs. According to him, Compliance laws are meant to stop bad actors as it acts as a check, to ensure that financial institutions such as banks are not used as a gateway to launder monies and perpetrate other criminal activities.

Need to do more

While noting that some law enforcement agents have also been attending training organized by A&D, Owonibi said the government would need to do more to ensure all security officials in the country are well-trained to combat financial crimes.

Backstory

The CBN recently released some guidelines for virtual assets to allow virtual assets service providers (VASPs) which include cryptocurrencies and crypto assets organizations to open accounts with Nigerian banks.

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This came two years after the apex bank had restricted banks and other financial institutions from operating accounts for cryptocurrency service providers. The guidelines, issued to all banks and other financial institutions on Friday, December 22, 2023, stipulate conditions for opening an account by virtual assets providers.

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