The Economic and Financial Crimes Commission (EFCC) of Nigeria

The Economic and Financial Crimes Commission (EFCC) of Nigeria has warned about the risks of exposing crypto investors to fraudulent elements. Speaking on behalf of the organization, Ola Olukoyede, Executive Chairman of the EFCC, cautioned that Nigeria risks exposing its financial system to large-scale abuse if cryptocurrency activities continue without proper regulation.

Olukoyede, represented by his Chief of Staff, Michael Nze, addressed stakeholders and members of the Blockchain Technology Association of Nigeria (SiBAN) at the EFCC headquarters in Abuja. He described cryptocurrency as an engine of global innovation and wealth creation, emphasizing that it could become a tool for terrorism financing and fraud if left unchecked.

EFCC Chairman reiterates the need for crypto regulation in Nigeria

Olukoyede referred to crypto as the new oil, indicating the significant financial opportunities in the industry. However, he stressed the necessity of regulation to help genuine operators thrive while protecting them from fraudsters. He noted, “There is a thin line between genuine crypto operators and fraudsters,” and lamented the involvement of politically exposed persons in money laundering activities.

He urged SiBAN and blockchain stakeholders to promote awareness and education for those entering the crypto space and collaborate with the EFCC in reporting bad actors. “The more enlightenment and training we provide, the stronger our economy becomes,” he added.

SiBAN president calls for regulation without stifling innovation

Obinna Iwuno, SiBAN president, stated that the association has established a code of ethics based on best global practices to show readiness for regulation in the crypto sector. He noted that the group has been advocating for regulation since 2018 to prevent capital flight and is eager to collaborate with the EFCC on investor education efforts.

Iwuno mentioned that SiBAN mandates Know Your Customer (KYC) compliance for crypto platforms and encourages the appointment of compliance officers to ensure accountability. While advocating for regulation, he emphasized the importance of fostering innovation and highlighted the youth’s active participation in Nigeria’s crypto landscape, warning of the risks associated with a lack of regulation, including money laundering and threats to national security.