The International Monetary Fund (IMF) has recommended that global cryptocurrency trading platforms operating in Nigeria should be registered or licenced and subject to regulatory requirements.
News About Nigeria reports that this recommendation comes amidst concerns raised in the latest IMF staff country report for Nigeria about the rapid growth of foreign exchange (FX) trading platforms in the country and their potential impact on financial stability.
The IMF pointed out that Nigerian authorities took steps at the end of February to address issues surrounding cryptocurrency trading platforms.
In response, the IMF staff recommended that these platforms should be subjected to the same regulatory requirements applicable to financial intermediaries, following the principle of “same activity, same risk, and same regulation.”
Moreover, the IMF urged Nigerian authorities to strengthen anti-money laundering and combating the financing of terrorism (AML/CFT) preventive controls on crypto trading platforms.
It said effective risk-based supervision of these platforms and other virtual asset service providers is important
During discussions with the IMF team, Nigerian authorities acknowledged the need to stabilise the FX market through critical reforms.
The report also noted South Africa’s leading role in cryptocurrency regulation, with approximately 60 digital-asset platforms licenced in the country.
Nigeria has classified cryptocurrency trading as a national security issue, with regulatory actions taken by both the Office of the National Security Adviser (ONSA) and the Central Bank of Nigeria (CBN).
Earlier this year, the CBN directed fintech startups operating in Nigeria to block accounts engaging in cryptocurrency transactions and report such activities to law enforcement agencies.
Additionally, the Nigerian Securities and Exchange Commission (SEC) called for measures to remove the naira as a currency pair from cryptocurrency peer-to-peer platforms during a virtual meeting with the Blockchain Industry Coordinating Committee of Nigeria (BICCoN).
