The Nigeria EFCC and Financial Division Commission (EFCC) has warned the risks of opening cryptographic investors to fraudulent elements. Speaking on behalf of the organization, Olakoyede, executive president of the EFCC, said that the Nigerian risks exposing its financial system to large-scale abuse if cryptocurrency activities continue without appropriate regulations.
Olukoyede was represented by his chief of staff, Michael Nze, addressing stakeholders and members of the Technology Association of Nigeria Blockchain (Siban), led by its president, Obinna Iwuno, at the EFCC headquarters in Abuja.
During the courtesy visit, Olukoyde described cryptocurrency as the engine of global innovation and wealth creation. In addition, he noted that in bad hands, it could become a tool for making vices such as financing and fraud of terrorism if they were without control.
The president of the EFCC reiterates the need for cryptographic regulation in Nigeria
Olukoyde described the crypto as the new oil, noting that there is so much money to be saved in the industry. However, he noted that the ecosystem must be properly regulated, noting that it would help people prosper without stifling innovation in space.
The EFCC boss has also added that without appropriate regulations, authentic actors in space are also required to become the prey of bad elements that seek to enjoy their inexperience, their haste or their need to earn money.
“There is a thin line between true crypto operators and fraudsters. Unfortunately, we see people politically exposed and even so -called legitimate actors exploiting crypto for money laundering,” said Olukoyede.
He also urged Siban and other stakeholders affiliated with blockchain to ensure that they make rapid awareness and education to people who seek to enter the scene.
In addition, Olukoyde has instructed the association to play its role in reducing the threat of bad actors in space, noting that they can do them to report them to the competent authorities. “You can collaborate with us to stop money laundering. You can denounce. You can be denouncing. The more illumination and training, the stronger our economy,” he added.
The President of Siban calls for regulations without stifling innovation
Obinna Iwuno, within the framework of its remarks, said that the association had already developed a modeled ethics code after the best world practices, revealing its preparation for regulations in the cryptographic industry. “We have drawn from international standards to create a code of ethics for practitioners and operators in Nigeria. This demonstrates our commitment to be ethical, regulated and in accordance with local and global laws,” said Iwuno.
Iwuno stressed that the group has called on the government to regulate cryptographic space since it became common in 2018, noting that without it, the country risks losing capital. He added that Siban wanted to collaborate with the EFCC in raising awareness among investor education, anti-SCAM campaigns and different methods of fraud report. In his words, Iwuno said that the group had already forced compliance with the compliance of your client (KYC) for cryptographic platforms.
The group also mentioned that it has asked cryptographic companies and related platforms to create a compliance agent to ensure that they are responsible. However, Iwuno warned that if the regulations are excellent for any country, it should not hinder the growth of the cryptography industry. “As much as we put pressure for regulations, we also want to make sure that innovation is not strangled,” he said.
He stressed that Nigeria has one of the highest populations of young people in Africa, and most of them are very active in cryptographic space. “However, without appropriate regulations, we risk whitening terrorism, threats to national security and finance proliferation,” he said.
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