Nigeria’s Economic and Financial Crimes Commission (EFCC) has cautioned against the potential dangers of unregulated cryptocurrency investments, exposing investors to fraudulent schemes. Ola Olukoyede, the EFCC’s Executive Chairman, stated that unchecked cryptocurrency activities could jeopardize Nigeria’s financial stability by making it vulnerable to widespread illicit activities.
Michael Nze, Chief of Staff representing Olukoyede, addressed stakeholders and members of the Blockchain Technology Association of Nigeria (SiBAN), led by President Obinna Iwuno, during a meeting at the EFCC headquarters in Abuja.
During the visit, Olukoyede acknowledged cryptocurrency’s potential as a global driver of innovation and wealth creation. However, he stressed that without appropriate oversight, it could be exploited for criminal purposes like funding terrorism and perpetrating fraud.
EFCC Head Underscores Importance of Crypto Oversight in Nigeria
Olukoyede likened crypto to a valuable resource, emphasizing its vast earning potential. He added that proper regulation is crucial to ensure both growth and safety within the crypto ecosystem, enabling legitimate participants to thrive while protecting against illicit practices.
The EFCC leader further pointed out that a lack of regulation can leave honest actors vulnerable to exploitation by malicious individuals seeking to profit from their inexperience or desire for quick gains.
“The line separating genuine crypto operators and scammers is very fine. Disturbingly, we are witnessing politically connected individuals and even supposedly legitimate businesses misusing cryptocurrency for money laundering,” Olukoyede remarked.
He urged SiBAN and other stakeholders within the blockchain community to prioritize public awareness and educational initiatives for those considering entering the crypto space.
Moreover, Olukoyede challenged the association to actively combat illicit actors by reporting them to the relevant authorities. “You can partner with us to prevent money laundering. You have the ability to report wrongdoing. You can serve as informants. Enhanced education and training will strengthen our economy,” he stated.
SiBAN President Advocates for Regulation That Encourages, Not Hinders, Innovation
Obinna Iwuno conveyed that SiBAN has developed a code of ethics based on leading international practices, illustrating their commitment to regulatory compliance within the crypto sector. “We’ve adopted international standards to shape a code of conduct for Nigerian crypto operators and participants. This shows our dedication to ethical practices, regulation, and adherence to both domestic and international laws,” Iwuno explained.
Iwuno highlighted that the group has advocated for crypto regulation since its mainstream adoption in 2018, arguing that a lack of oversight could lead to lost capital for the nation. He affirmed SiBAN’s eagerness to collaborate with the EFCC on public awareness initiatives, including investor education, anti-scam campaigns, and accessible fraud reporting systems. Iwuno emphasized that SiBAN has already mandated Know Your Customer (KYC) protocols for crypto platforms.
The association also stated that they’ve directed crypto companies and associated platforms to appoint compliance officers to promote accountability. Iwuno cautioned, however, that regulations should support, rather than stifle, the growth of the crypto industry. “While we advocate for regulation, we are also dedicated to ensuring that innovation is not suppressed,” he said.
He emphasized that Nigeria has a large, young population, many of whom are actively involved in cryptocurrency. “Without adequate regulation, we face risks of money laundering, terrorism funding, threats to national security, and proliferation financing,” he concluded.
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