IMF Recommends Licensing For Cryptocurrency Firms In Nigeria
The International Monetary Fund (IMF), has recommended that Nigeria’s government mandate global crypto trading platforms to register or secure licenses before commencing operations in the country.
This recommendation was outlined in the IMF’s most recent staff report, unveiled on Thursday, subsequent to the conclusion of its 2024 Article IV consultation with Nigeria.
The report suggested that compelling global crypto trading platforms to register will mean they must adhere to regulatory requirements.
“Global crypto trading platforms should be registered or licensed in Nigeria and subject to the same regulatory requirements applicable to financial intermediaries following the principle of the same activity, same risk, and same regulation,” the report highlighted.
The IMF also acknowledged that Nigerian authorities made notable strides at the beginning of the year to tackle issues associated with cryptocurrency trading platforms.
Naija News recalls that in February, the Central Bank of Nigeria raised alarms over the significant flow of transactions via crypto exchange platforms from untraceable origins, affirming its cooperation with other government bodies to tackle these unlawful financial activities.
The bank reported that $26 billion moved through Binance Nigeria from unidentified sources in the last year.
This has led to cryptocurrency trading platforms being scrutinized in the past three months, amidst suspicions of manipulating the local currency’s value in the foreign exchange market.
The Director General of the Securities and Exchange Commission, Emomotimi Agama, stated on Monday that delisting the naira from P2P platforms was essential to prevent the current level of manipulation.
The CBN has also mandated fintech companies operating in the country to close the accounts of customers conducting cryptocurrency transactions and to alert law enforcement agencies about these transactions.
The post IMF Recommends Licensing For Cryptocurrency Firms In Nigeria appeared first on Naija News.
