Regulation
NoOnes CEO Ray Youssef backs IMF on crypto regulation in Nigeria – Tech | Business
Ray YoussefCEO of Peoplea crypto market, believes that the recent calls from the International Monetary Fund (IMF) Nigeria allowing global cryptocurrency exchanges is a step the West African country should follow.
Techeconomy reported on the IMF’s recommendation that global cryptocurrency trading platforms should be registered or licensed in Nigeria and subject to regulatory requirements.
The Body made the recommendation in the recent Nigeria National Staff Report, warning that the rapid growth of foreign exchange trading platforms in Nigeria poses new challenges to the country’s financial stability.
The IMF also noted that Nigerian authorities took significant steps in late February to address issues with cryptocurrency exchanges.
The report said: “Staff recommends that global crypto trading platforms be registered or licensed in Nigeria and subject to the same regulatory requirements applicable to financial intermediaries on a same business, same risk and same regulation basis.
The IMF also urged Nigerian authorities to strengthen preventive anti-money laundering and counter-terrorist financing (AML/CFT) controls on cryptocurrency trading platforms.
He highlighted the need for effective risk-based oversight of these platforms and other virtual asset service providers.
During discussions with the IMF team, Nigerian authorities stressed the need to stabilize the foreign exchange market through crucial reforms.
Recognizing the growing pressure on the exchange rate due to illicit flows through crypto platforms, authorities have stressed the importance of maintaining external stability.
They stressed that recent reforms and efforts to attract foreign exchange liquidity, including a mandate requiring international oil companies to hold 50 percent of oil revenues repatriated to Nigeria for 90 days, were designed to achieve this goal.
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The Nigerian government has admitted that illicit flows through cryptocurrency platforms are putting excessive pressure on the exchange rate.
Therefore, authorities have decided to implement stricter controls on crypto platforms and strengthen compliance with existing exchange regulations.
The report said:
“The authorities agreed on the importance of maintaining external stability and stressed that the reforms they have implemented as well as efforts to attract foreign currency liquidity, including the obligation for international oil companies to hold 50 percent of oil revenues repatriated to Nigeria for 90 days. …are oriented towards this end. They believe that pressure on the exchange rate now comes from illicit flows, including through crypto asset platforms, and is not driven by fundamentals, noting that some caps on foreign exchange access are intended to combat against abuse.
For example, South Africa has reportedly led the way in regulating cryptocurrencies by licensing around 60 digital asset platforms, positioning itself as one of the first nations on the continent to impose licensing for exchanges. cryptographic.
With Nigeria accounting for approximately 66.8% of Africa’s cryptocurrency interests, the Office of the National Security Advisor (ONSA) has classified cryptocurrency trading as a national security concern.
Additionally, the Central Bank of Nigeria (CBN) has spearheaded four fintech startups operating in the country: Opay, Moniepoint, PagaAnd Palmpay– to block the accounts of customers carrying out cryptocurrency transactions and report these transactions to law enforcement. [The fintech companies have now been allowed to resume new customer onboarding].
More so, around February this year, the crypto trading platform, Binancehad to disable its peer-to-peer functionality for Nigerian users as it was under the spotlight from the Nigerian government following allegations of currency manipulation and money laundering.
Meanwhile, the Nigerian Securities and Exchange Commission (SEC), in a virtual meeting with the Blockchain Industry Coordination Committee of Nigeria (BICCoN), called for a new measure of crypto- currency aimed at suppressing the naira, a peer-to-peer cryptocurrency pair. platforms.
Commenting on this development, in particular the IMF recommendations, Ray Youssef, the People“The CEO said:
“The strategy adopted by Western institutions, especially in Africa’s largest economy, could hamper Nigerian fintech innovation. This approach reflects regulatory frameworks such as New York’s Bit License, which has caused a significant outflow of talent and capital from New York and the United States as a whole. Such policies could harm the dynamism of the Nigerian sector, especially in the thriving P2P crypto markets which have introduced substantial liquidity.
There is a possibility of facing restrictive measures similar to those associated with central bank digital currencies (CBDCs), which Nigeria has largely resisted due to a preference for decentralized alternatives like Bitcoin P2P and other crypto -currencies. This is crucial for the continued evolution of P2P platforms, as they are essential to unlocking the potential of pan-African trade.
People is a fast-growing African crypto marketplace with over 400,000 users across its largest markets including Nigeria, Cameroon, Ghana, India and the Philippines.
Despite launching last year, NoOnes has seen impressive growth with over 200,000 app downloads and Ray brings over 20 years of experience building peer-to-peer focused businesses.
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