According to the IMF, imposing mandatory registration and license procurement for every crypto platform before obtaining operational access in Nigeria will be crucial in helping the West African nation secure financial stability.

Read Also: Nigerian SEC Seeks Stricter Crypto Regulation, Deletes P2P On Platforms

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

The financial agency highlighted the new recommendations in IMF’s 2024 Article IV consultation with Nigeria, and it came at a period characterized by Nigerian currency gross devaluation.

Aside from suggesting possible methods of enacting crypto regulatory compliance, the IMF also commended the Nigerian regulatory bodies’ handling of crypto-related cases, evident in the ongoing legal dispute between the Nigerian government and the world’s largest exchange, Binance.

Nigerian Authorities Stage War Against Crypto And Fintech Platforms

Earlier this year, particularly in February, the Central Bank of Nigeria (CBN) raised an alarm about significant untraceable transactions occurring via crypto exchanges and contributing significantly to the instability associated with Nigeria’s Naira currency.

The CBN spotlighted Binance Nigeria as a notable facilitator of the hideous transactions, stating that the trading platform had processed and finalized transactions estimated to be worth about $26 billion.

Consequently, the Nigerian authorities charged Binance to court on counts of financial crime offenses ranging from money laundering, tax evasion, aiding customers to evade tax, etc. How events unfold for both parties remains uncertain. However, a potential settlement between both parties could take a long time, which does not depict a favorable outcome for either entity.

We are on twitter, follow us to connect with us :- @TimesTabloid1

— TimesTabloid (@TimesTabloid1) July 15, 2023

Read Also: Binance To End All Naira (NGN)-Related Services. What Nigerian Users Must Do

In addition, the CBN ordered fintech firms operating within the Nigerian axis to block accounts of customers running crypto transactions, adding that defaulters should be reported to the appropriate law enforcement agents for follow-up, which depicts the possibility of strict punishment measures for offenders.

Meanwhile, the Nigerian Securities and Exchange Commission (SEC) has moved to ban peer-to-peer (P2P) cryptocurrency transactions with Naira. The Nigerian SEC Director, General Emomotimi Agama, while speaking about delisting the Naira from P2P, noted that it would be crucial in protecting the Nigerian currency from manipulation that has seen it drastically lose value.

Follow us on Twitter, Facebook, Telegram, and Google News

The post IMF Urges Nigerian Government to Regulate and License Foreign Crypto Exchanges appeared first on Times Tabloid.

Delisting Naira from P2P Platforms: A Potential Solution

Agama emphasizes the recent surge in peer-to-peer (P2P) crypto trading and its reported impact on the Naira’s exchange rate. To address concerns about market manipulation in the P2P space, the SEC is considering delisting the Naira as a trading currency on these platforms.

Read Also: Binance To End All Naira (NGN)-Related Services. What Nigerian Users Must Do

The Commission released a statement outlining this proposal, with Dr. Agama saying: “One of the things that needs to be done is delisting the naira from the P2P space in order to avoid the level of manipulation that is currently happening.”

He continued by “enjoining participants in the crypto space to be patriotic enough to name and shame those that are involved in disrupting the markets negatively.” The SEC believes this measure will help to mitigate illegal activities and stabilize the Naira.

Balancing Innovation and National Interest

Dr. Agama acknowledges the potential of blockchain technology and cryptocurrencies. He highlights the SEC’s commitment to fostering a regulatory environment that encourages innovation while safeguarding national economic interests.

This was highlighted in a statement from the Commission, which quoted Dr. Agama saying: “We want to assure that this management will ensure that people or institutions that require registration with the SEC are quickly licensed.

We assure you that we will give guidance when necessary and do well to streamline the processes to make it less difficult.” The SEC is currently developing comprehensive guidelines for the digital asset sector, encompassing areas like crypto wallets, custody services, and fund management.

Collaboration for a Thriving Digital Asset Market

The SEC is actively seeking cooperation from industry stakeholders, including cryptocurrency exchanges and wallet providers. The aim is to create a well-regulated digital asset marketplace that contributes positively to Nigeria’s economic growth.

Dr. Agama encouraged open communication and urged industry participants to identify and report any harmful practices within the market. He stated: “I want to seek your cooperation in dealing with this as we roll out in the coming days the regulations that would take control of these areas.

Together, I am confident that we can weed out bad actors and harness the immense potential of this progressive technology for the benefit of all Nigerians in tandem with this government’s renewed hope agenda.”  

This stricter regulatory stance follows a series of events that have impacted the Nigerian crypto landscape. The classification of cryptocurrency trading as a national security concern by the National Security Adviser (NSA) in February 2024 marked a significant shift.

Subsequently, the Central Bank of Nigeria (CBN) directed fintech companies to restrict accounts associated with crypto transactions and report them to law enforcement. These actions, alongside the SEC’s proposed fee increase for crypto exchange registration from 30 million naira ($18,620) to 150 million naira ($93,000), indicate a more cautious approach from financial regulators.

We are on twitter, follow us to connect with us :- @TimesTabloid1

— TimesTabloid (@TimesTabloid1) July 15, 2023

Read Also: Ezyswap: The Most Reliable Way To Sell Crypto For Naira

Industry Response and the Path Forward

The Blockchain Industry Coordinating Committee of Nigeria (BICCON) previously sought discussions with the SEC to establish a common ground for crypto regulation. Stakeholders within the industry, like the Blockchain Technology Association of Nigeria (SiBAN), have attributed the rise of P2P trading to the lack of clear regulations.

Moving forward, collaboration between the SEC, industry players, and government agencies will be crucial for establishing a balanced and effective regulatory framework for the Nigerian cryptocurrency sector.

Follow us on Twitter, Facebook, Telegram, and Google News

The post Nigerian SEC Seeks Stricter Crypto Regulation, Deletes P2P On Platforms appeared first on Times Tabloid.

The top-ranked digital assets exchange by daily trading volume and the largest blockchain ecosystem Binance, has been the latest target for the United States Securities and Exchange Commission (SEC) alongside Coinbase in the agency’s expedition to achieve crypto regulation by enforcement.

Read Also: Banks Fear as Nigeria Set To Become the First African Country to Launch Its Own Digital Currency

In the wake of the 13-charge lawsuit filed against Binance by the Gary Gensler-led SEC on June 5, the attention of the Nigeria Securities and Exchange Commission was drawn to the website operated by an entity dubbed “Binance Nigeria Limited.” The platform which offers crypto trading services has been soliciting the Nigerian public to trade crypto assets on its various web and mobile applications. 

Given that “Binance Nigeria Limited” is unregistered with SEC Nigeria and hence, its services unregulated by the Commission, SEC Nigeria declared the operations of “Binance Nigeria Limited” illegal and warned Nigerians to desist from patronizing the platform. 

Per the circular issued on June 9, Binance Nigeria Limited was directed to immediately stop soliciting Nigerian investors in any form whatsoever by SEC Nigeria. The Nigerian securities commission added that further regulatory actions would be taken against “Binance Nigeria Limited.” Consequently, this development fueled more FUD against the Binance crypto exchange which has prompted Changpeng Zhao to address the issue.

Read Also: Why Tehlex is the king of Gift Card Platform in Nigeria

Binance CEO Responds

Reacting to the matter, the widely followed CZ implied that Binance has no relationship with the entity known as “Binance Nigeria Limited,” urging users to not believe everything they see in the news. Accordingly, the exchange founder noted that a cease and desist notice has been sent to the said entity which he called a scam. 

Binance have issued cease & desist notice to the scammer entity "Binance Nigeria Limited".

Don't believe everything you read in the news.

— CZ Binance (@cz_binance) June 18, 2023

On the other hand, Binance is pushing to obtain clarity from SEC Nigeria. “The entity mentioned in the circular is not affiliated with us. We are therefore seeking clarity from the Nigerian SEC and remain committed to working with them cooperatively on the next steps,” a Binance spokesperson said.

As recently published, Binance CEO has expressed his delight and relief as the court resolved a protracted dispute in its lawsuit with United States SEC.

Follow us on Twitter, Facebook, Telegram, and Google News

The post CZ Says Binance Has Issued Cease and Desist Order Against ‘Binance Nigeria Limited’: Details appeared first on Times Tabloid.