Nigeria’s Authorities Seek Cryptocurrency Regulatory Frameworks Against Criminal Activities

Nigeria’s Authorities Seek Cryptocurrency Regulatory Frameworks Against Criminal Activities

The anonymous digital cash is widely used for criminal activities – for instance, Coingape reported, ISIS ruins war due to the huge investment in crashing crypto marke. A conference conducted by the Presidential Advisory Committee against Corruption (PACAC) in Nigeria calls for regulatory frameworks on the usage of cryptocurrency for criminal activities.

It was discussed during the conference in Abuja, named “understanding the interface between cryptocurrency and money laundering”. The panel was occupied by Central Bank of Nigeria (CBN) Governor Godwin Emefiele, Senate Committee on Anti-Corruption Chairman Senator Chukwuka Utazi and Prof Itse Sagay Presidential Advisory Committee against Corruption (PACAC).

Prof. Itse Sagay – PACAC

Prof. Itse Sagay who is a chairman of the community took stage stating the cryptocurrencies have often used for criminal activities and hence regulation must be adopted to tackle the challenge. Amidst the benefits one can leverage from blockchain and cryptocurrency, Sagay’s statement cautioned its adverse effect too. He encourages the increasing adoption of blockchain and cryptocurrency, and also concerned over its decentralized mechanism.

He said;

“Also there is a bad side, which is the use of virtual currencies for criminal activities. Because of the encrypted nature of virtual currencies, it is necessary therefore that there should be some regulations provided in this sector, in order to prevent it from being a new avenue for criminal activity and evasion of social responsibility,”

Sagay explains that the regulation is necessary not just to safeguard the stake of individual or companies to use cryptocurrencies but also to protect investors and to look at the tax matter over the profit generated out of online transactions.

Isa Ali Ibrahim Pantami – NIDA

With Sagay, Isa Ali Ibrahim Pantami, Director General of Nigeria Information Technology Development Agency (NIDA) join the panel and discussed;

Currently, cryptocurrency is not accepted as a legal tender by most countries. Some jurisdictions treat it as a commodity for the purpose of taxation while others see it as money.

Governor Godwin Emefiele – CBN

Addressing the Fintech, Godwin Emefiele, CBN Governor said the sustainability can be balanced if the risks associated with virtual currency are taken care. He moreover seeks financial entities to safeguard their interest against direct and indirect vulnerabilities.

“Information from indicates that crypto-currencies global market capitalization currently stands at approximately 203 billion US dollars as at end of October 2018. This is an indication that crypto-currencies may become a major part of the financial system and it’s currently offering new and exciting opportunities as well as challenges to the industry and regulators, hence the need for regulatory and legislative frameworks to address the challenges became imperative.” He eloborates

Senator Chukwuka Utazi

He said virtual currency has become new order and the people continued hiding the”ill-acquired assets and began utilizing it for “illegal means”. He explains that;

“In an age where people hide ill-acquired assets and use same for illegal means to sponsor terrorism and all manner of threats to human existence, there should be legislative and regulatory frameworks that understand the dynamics of this genre of economic activity to place society a step ahead of its rapid evolution.” He adds,“there is, therefore, a yawning need for tighter regulation.”

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