IMF urges Nigerian government to regulate, allow foreign crypto exchanges – Times Tabloid

In a new development that has gained considerable attention, the International Monetary Fund (IMF), a financial agency of the United Nations, has urged the Nigerian government to regulate and license foreign crypto exchanges.

According to the IMF, imposing mandatory registration and licensing of each crypto platform before gaining operational access in Nigeria will be crucial in helping the West African country achieve financial stability.

Read also: Nigerian SEC Seeks Tighter Crypto Regulation, Removes P2P on Platforms

The report reads in part, “The authorities should ensure the application of AML/CFT measures [Anti-Money Laundering and Countering the Financing of Terrorism] controls by cryptocurrency trading platforms and other virtual asset service providers through effective AML/CFT risk-based supervision.

The financial agency highlighted new recommendations made during the IMF’s Article IV consultations with Nigeria in 2024, and this comes at a time characterized by gross devaluation of the Nigerian currency.

Aside from suggesting possible methods to implement crypto regulatory compliance, the IMF also praised Nigerian regulators’ handling of crypto-related cases, as evidenced by the ongoing legal dispute between the government Nigerian and the world’s largest exchange, Binance.

Nigerian authorities wage war on crypto and fintech platforms

Earlier this year, particularly in February, the Central Bank of Nigeria (CBN) raised the alarm regarding large untraceable transactions occurring through crypto exchanges and significantly contributing to the instability associated with the currency Nigerian Naira.

The CBN exposed Binance Nigeria as a notable facilitator of these hideous transactions, saying the trading platform had processed and finalized transactions estimated at around $26 billion.

Consequently, Nigerian authorities have taken Binance to court for financial crime offenses ranging from money laundering, tax evasion, helping customers evade taxes, and more. How events will unfold for both sides remains unclear. However, a possible settlement between the two parties could take a long time, which does not suggest a favorable outcome for either entity.

Read also: Binance to terminate all Naira (NGN) related services. What Nigerian Users Should Do

Furthermore, the CBN ordered fintech companies operating within the Nigerian axis to block the accounts of customers carrying out crypto transactions, adding that defaulters should be reported to appropriate law enforcement officers for a followed, which suggests the possibility of strict sanctions for violators.

Meanwhile, the Nigerian Securities and Exchange Commission (SEC) has moved to ban peer-to-peer (P2P) cryptocurrency transactions with Naira. The Nigerian Director of the SEC, General Emomotimi Agama, while speaking on the delisting of the Naira from P2P, noted that this would be crucial in protecting the Nigerian currency from manipulations that have caused it to significantly lose value.

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