Nigeria is being urged to implement regulations on cryptocurrency to combat financial crimes. Adedeji Owonibi, co-founder of A&D Forensics, highlighted that Nigeria's unregulated crypto market allows unchecked activities.

Owonibi made these remarks during a training event for crypto compliance experts, stressing that Nigeria must establish clear cryptocurrency regulations to prevent financial misconduct, stating, “if there is no law, there is no offense.” This comes after the Central Bank of Nigeria (CBN) lifted a ban on crypto transactions, allowing banks to handle accounts for virtual asset service providers (VASPs).

The training aims to ensure banks comply with laws when dealing with VASPs. Owonibi underscored the importance of hiring compliance specialists by financial institutions to monitor the legitimacy of funds within the crypto exchange.

He pointed out that compliance regulations are crucial for preventing money laundering and other illicit activities through financial systems. Following a previous prohibition, the CBN issued guidelines on December 22, 2023, for VASPs to establish bank accounts.

Owonibi also mentioned that banks must verify the compliance of VASPs to prevent them from facilitating illegal activities like money laundering, drug trafficking, or terrorism financing. He noted the government's efforts in training law enforcement in compliance but called for more comprehensive training to better fight financial crimes.

Despite the CBN's more lenient approach, Nigerian crypto analysts suggest that the Securities and Exchange Commission should update VASP guidelines, enabling local crypto exchanges to obtain operating licenses.