Adedeji Owonibi Advocates for Nigerian Cryptocurrency Regulation to Combat Financial Crimes
The call for cryptocurrency regulation in Nigeria has gained momentum, with a focus on addressing financial crimes like money laundering within the digital currency space. Adedeji Owonibi, co-founder of A&D Forensics, has been leading this advocacy and highlighting the role of regulation in curbing illicit activities. Owonibi emphasizes the need for comprehensive laws governing cryptocurrency activities to deter and mitigate the risk of financial crimes.
The Importance of Regulation in Nigeria’s Crypto Sector
Owonibi argues that without stringent regulation, the cryptocurrency sector in Nigeria remains vulnerable to financial malfeasance. This perspective is particularly relevant following the Central Bank of Nigeria (CBN) lifting its ban on crypto transactions. As Nigeria plays a significant role in the global cryptocurrency market, regulation becomes crucial to address the surge in crypto activity and combat increased financial crimes.
Regulatory Frameworks for Security and Scalability
Owonibi also emphasizes how regulatory frameworks can enhance the security and scalability of the crypto industry. He points to the developmental regulation crafted by The National Information Technology Development Agency (NITDA) as a significant step toward creating a favorable environment for blockchain and crypto industry growth. Owonibi suggests that this approach should have been considered by the CBN earlier instead of severing ties between cryptocurrency exchange firms and local banks.
Tracking Illicit Activities and Combating Cryptocurrency Scams
Owonibi delves into the complexities of tracking and investigating cryptocurrency fraud, acknowledging challenges posed by Over-The-Counter (OTC) transactions and crypto mixers. However, he highlights advancements in regulatory technology and international cooperation that are improving the ability to trace illicit activities. Owonibi emphasizes the significance of regulatory measures in combating cryptocurrency scams and underscores the evolving landscape of blockchain anonymity and global efforts to establish transaction traceability standards.
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