According to Nigeria’s EFCC, weak regulations open crypto investors to fraud

Nigeria’s Economic and Financial Crimes Commission (EFCC) warns about the risks of opening crypto investors to fraudulent elements. On behalf of the organization, EFCC Executive Chairman Ola Olukoyede says that if Nigeria continues without proper regulations, there is a risk that Nigeria will expose its financial system to mass abuse.

Olukoyede, represented by his Chief of Staff Michael Nze, spoke to stakeholders and members of the Nigerian Blockchain Technology Association (SIBAN), led by President Obinna Iuno at EFCC headquarters in Abuja.

During the courtesy visit, Olukoyede described cryptocurrency as an engine for global innovation and wealth creation. He further noted that, with the wrong hands and unchecked, it could be a tool for financing terrorism and carrying out evils such as fraud.

EFCC Chairman repeats the need for crypto regulations in Nigeria

Olukoyede described Crypto as the new oil and pointed out that there is a lot of money in the industry. However, he pointed out that ecosystems need to be properly regulated, and that it will help people thrive without throttling spatial innovation.

The EFCC boss also added that without proper regulations, real actors in the space can also be prey to bad factors trying to capitalize on inexperienced, hurry, or the need to make money.

“There’s a thin line between real code operators and con artists. Sadly, we’re even looking at people who’ve been politically exposed, or so-called legal stakeholders who exploit codes for money,” Orcoyode said.

He also urged Shebang and other blockchain-related stakeholders to implement prompt recognition and education for those seeking to enter the field.

Furthermore, Olukoyede accused the association to help control the threat of bad actors in the universe, and pointed out that they could do well to report them to relevant authorities. “You can work with us to stop money laundering. You can blow whistle. You can become a whistleblower. The more enlightenment and training we offer, the stronger our economy will be,” he added.

President Shebang calls for regulations without thwarting innovation

As part of his remarks, Obinna Iuno said the association has come up with a code of ethics modelled on the highest global practices and has made it clear that it prepares for regulations in the crypto industry. “We have been drawn from international standards to create codes of ethics for Nigerian practitioners and operators, indicating our commitment to being ethical, regulated and complying with both local and global laws,” Iwano said.

Iwuno stressed that since the group became mainstream in 2018, it has been asking the government to regulate crypto space, saying that without that, the country could risk losing capital. He added that Shebang is keen to work with the EFCC to raise awareness through investor education, anti-SCAM campaigns and various fraud reporting methods. In his words, Iwuno argued that the group already mandates your customer (KYC) compliance as knowing compliance with the crypto platform.

The group also said it directed crypto companies and related platforms to establish compliance officers to ensure they are responsible. However, Iwuno warned that regulations are superior to any country, but not to hinder the growth of the crypto industry. “As long as we want regulations, we want to ensure that innovation is not strangled,” he said.

He emphasizes that Nigeria has one of the highest youth populations in Africa, most of which are very active in the crypto space. “But without proper regulations, we are at risk of money laundering, terrorism financing, national security threats, and proliferation funding,” he said.