The chairman of Nigerian anti-corruption body has issued a stark warning that Nigeria’s financial system is highly vulnerable to large-scale abuse if the country’s cryptocurrency activities remain unregulated.
Collaboration for Compliance and Investor Protection
Ola Olukoyede, chairperson of the Economic and Financial Crimes Commission (EFCC), described crypto as a powerful “engine of global innovation and wealth creation. However, he warns that it also has the potential “enabler of money laundering, terrorism financing, and fraud.” Olukoyede stressed that the lack of regulation blurs the line between legitimate operators and fraudsters, making the entire ecosystem susceptible to exploitation.
“Crypto is the new oil. There’s so much money in it. But the ecosystem needs to be properly regulated,” Olukoyede said. “Without that regulation, even genuine actors will run into problems. Sadly, we are seeing politically exposed persons and even so-called legitimate actors exploiting crypto for laundering money.”
The EFCC boss called for a collaborative partnership with the Stakeholders in Blockchain Technology Association of Nigeria (SIBAN) and other blockchain stakeholders. He urged the association to prioritize investor education and compliance, suggesting they could play a crucial role as whistleblowers by reporting bad actors.
“You can collaborate with us to stop money laundering. You can blow the whistle. You can be whistleblowers. The more enlightenment and training we provide, the stronger our economy becomes,” he added.
In response, SIBAN leader Obinna Iwuno affirmed the association’s readiness for regulation, stating that it has already developed a code of ethics modeled after global best practices. Iwuno highlighted SiBAN’s long-standing call for regulation since 2018 to prevent capital flight and protect the economy.
The SIBAN leader stressed that the association is keen to partner with the EFCC on anti-scam campaigns, fraud reporting, and investor education. He noted that SIBAN has already mandated know your customer (KYC) compliance for digital asset platforms and requires operators to have dedicated compliance officers.
However, Iwuno also cautioned against stifling innovation, noting that regulation must strike a balance. He expressed optimism that a strong partnership with the EFCC would help achieve this, ensuring that Nigeria’s active youth population can continue to innovate in the space without exposing the nation to threats like money laundering and terrorism financing.
