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| Why Cryptocurrency Businesses Should Be Licensed in Nigeria – IMF |
The IMF also commended Nigerian authorities for taking significant steps in February 2024 to address issues related to cryptocurrency trading platforms. Specifically, the IMF urged the Nigerian government to strengthen anti-money laundering and combating the financing of terrorism (AML/CFT) preventive controls on crypto trading platforms
The International Monetary Fund (IMF) has recommended that global crypto trading platforms should be registered or licensed in Nigeria and subject to regulatory requirements. This recommendation was made in the latest IMF staff country report for Nigeria, which highlights the rapid growth of foreign exchange (FX) trading platforms in the country and the resulting challenges to financial stability.
The IMF also commended Nigerian authorities for taking significant steps in February 2024 to address issues related to cryptocurrency trading platforms. Specifically, the IMF urged the Nigerian government to strengthen anti-money laundering and combating the financing of terrorism (AML/CFT) preventive controls on crypto trading platforms. It emphasized the need for effective risk-based supervision of these platforms and other virtual asset service providers.
During discussions with the IMF team, Nigerian authorities acknowledged the importance of stabilizing the FX market through critical reforms. They recognized the pressure on the exchange rate due to illicit flows via crypto platforms and highlighted efforts to attract FX liquidity, including a mandate requiring international oil companies to hold 50% of repatriated oil receipts in Nigeria for 90 days. These measures aim to maintain external stability.
The Nigerian government has taken steps to implement stricter controls on crypto platforms and reinforce compliance with existing FX regulations. The IMF report underscores the significance of maintaining external stability and emphasizes that ceilings on FX access are intended to curb abuse, particularly related to illicit flows through cryptocurrency platforms.
