Nigeria Needs to Regulate Cryptocurrency Ecosystem — EFCC
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The Executive Chairman of the Economic and Financial Crimes Commission (EFCC), Mr. Ola Olukoyede, has emphasized the urgent need for regulatory frameworks to govern cryptocurrency operations in Nigeria.
He stated that while cryptocurrency represents a significant innovation and transactional technology in the global economy, it also requires well-defined rules to prevent its misuse for fraudulent activities.
Olukoyede made this observation in Abuja during a courtesy visit by the Stakeholders in Blockchain Technology Association of Nigeria (SiBAN), led by its President, Mr. Obinna Iwuno, to the Commission’s corporate headquarters.
Speaking through his Chief of Staff, Commander of the EFCC, CE Michael Nzekwe, Olukoyede stated:“Crypto is the new oil. There’s so much money in crypto. The ecosystem is something that needs to be properly regulated. If that regulation is not done, even the genuine actors will run into big problems.The truth is, there’s a thin line between genuine crypto operators and fraudsters. What has been happening is that even politically exposed persons are now using it as a means of laundering money, and some of the actors in the ecosystem are falling for it. Even some of those considered genuine are involved in money laundering. So, it’s important that we’re having this particular meeting.”
He further encouraged players in the cryptocurrency and blockchain space to prioritize investor education and capacity-building.
According to him, SiBAN can also support the Commission’s anti-money laundering efforts by serving as whistleblowers.
“I think one of the key takeaways from this meeting is the need to create more time to sit down and examine these issues in depth.
I’m glad you’re involved in training. Identify key factors foremost among them are enlightenment and training. We want to ensure we have a clean economy. We can collaborate to stop money laundering. You can blow the whistle; you can be whistleblowers,” he added.
In his earlier remarks, SiBAN President Obinna Iwuno highlighted the growing importance of cryptocurrencies and blockchain technology in Nigeria’s national economy, which has motivated the association to establish its own regulatory frameworks.
“We have a Code of Ethics, which we have drafted using international best practices and standards from jurisdictions around the world that already have crypto regulation.
It is a code for practitioners and operators in Nigeria. It demonstrates our commitment and willingness to operate ethically, to be regulated, and to comply with both local laws and global regulatory standards.
We have declared our openness and our need for regulation. We’ve been advocating for regulation since 2018, so that we do not lose out or become victims of capital flight,” he noted.
Iwuno called for stronger collaboration with the EFCC, noting that such cooperation would enable SiBAN to play a meaningful role in combating investment fraud and money laundering.
“We want to engage with the EFCC in areas such as education, collaboration, awareness campaigns, and anti-scam initiatives across the country.
We also want to partner with you in identifying crypto-related frauds and scams. We seek a working relationship where we can report bad actors and have the Commission take prompt action.
If we establish this relationship, we can proactively stop fraudulent activities before they begin.
“There’s so much more we can do. The EFCC can also leverage blockchain technology and cryptocurrency for its operations. In our first training on crypto investigation and compliance, we instructed our members to implement Know Your Customer (KYC) protocols on their platforms.
No operator should provide services without full KYC, in line with Nigeria’s regulatory requirements.
Additionally, every digital asset platform should have at least two compliance officers as a minimum standard,” he added.
