A forensic specialist has stated that for Nigeria to reduce financial crimes related to digital assets, it is imperative that the country completely regulate cryptocurrency activity. The co-founder of A&D Forensics also urged Nigeria to pass legislation requiring banks to screen service providers before authorizing them to access customer accounts.
Reducing Financial Crimes Connected to Cryptocurrencies
A blockchain and digital forensic specialist claims that for Nigeria to reduce financial crimes related to cryptocurrencies, complete regulation of cryptocurrency operations is necessary. The co-founder of A&D Forensics, Adedeji Owonibi, stated that Nigerian authorities would find it difficult to stop criminals from using digital assets for illegal purposes in the absence of a regulatory framework for crypto-related activity.
Owonibi has called for the passage of legislation governing cryptocurrencies in response to the Central Bank of Nigeria’s (CBN) recent decision to withdraw its directive on cryptocurrency that was issued on February 5. This regulation forced Nigerian banks to keep cryptocurrency companies out of the banking system for almost two years.
Nigerians’ interest in Bitcoin and other cryptocurrencies did not decline, even after numerous cryptocurrency businesses were forced to close their doors. Nigerians who used centralized exchanges suddenly switched to other platforms following the release of the CBN guideline. Since many of these sites lacked regulation, the number of financial crime cases involving the use of cryptocurrency inevitably increased.
Educating Police Officers
Meanwhile, Owonibi suggested passing legislation requiring banks to screen service providers before allowing them access to customer accounts during his remarks at a training session for compliance specialists with cryptocurrency.
“Financial organizations, like banks, must ensure that the virtual asset service providers (VASPs) they are creating accounts for are legitimate marketplaces, rather than entry points for individuals attempting to smuggle drugs, launder money, or fund terrorist activities worldwide,” stated the co-founder of A&D Forensics.
The co-founder stated that by appointing a qualified compliance officer, banks can protect their infrastructure from abuse. Owonibi went on to stress the value of training law enforcement personnel. He thinks this action will ‘guarantee that financial crimes do not continue to proliferate in our country.’.”
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