“IMF Highlights Risks of Untraceable Transactions,Backs License for Cryptocurrency Dealers,”


IMF Advocates Licensing Crypto Traders to Mitigate Risks and Improve Regulation

Thank you for reading this post, don't forget to subscribe!

The International Monetary Fund (IMF) has outlined the rationale behind the recommendation for the Central Bank of Nigeria (CBN) to issue operating licenses or register cryptocurrency dealers. According to the IMF’s 2024 Staff Report released recently, the organization suggests that global cryptocurrency trading platforms should be registered or licensed in Nigeria, akin to the licensed operators such as Bureaux De Change (BDCs) regulated by the CBN for forex transactions.

The IMF advises that these crypto trading platforms should be subjected to similar regulatory requirements as financial intermediaries, aligning with the principle of “same activity, same risk, and same regulation.”

The move comes in response to concerns raised by the CBN regarding the use of cryptocurrency trading for manipulating the naira exchange rate against global currencies. The CBN revealed that significant untraceable transactions, amounting to billions of dollars, were conducted through platforms like Binance, posing risks to the stability of the financial system.

To curb these risks and protect the value of the naira, the CBN took measures to prohibit banks and financial institutions from dealing with cryptocurrency traders. The IMF supports these actions and suggests further regulatory measures to address the challenges posed by the rapid growth of transactions on cryptocurrency platforms.

In its report, the IMF acknowledges Nigeria’s progress in combating money laundering and terrorism financing but emphasizes the need for continued action to align with international standards, particularly those set by the Financial Action Task Force (FATF). Nigeria’s efforts include legislative reforms, risk assessments, awareness-building, and increased investigation and prosecution of money laundering cases.

The IMF’s recommendations aim to enhance regulatory oversight, mitigate risks associated with cryptocurrency trading, and strengthen Nigeria’s financial system against illicit activities.

Discover more from Naija247news

Subscribe to get the latest posts to your email.

Naija247news is an investigative news platform that tracks news on Nigerian Economy, Business, Politics, Financial and Africa and Global Economy.

Share post:



More like this

I have become an Evangelist and a witness for Christ’ – Doyin Okupe proclaims after surviving Cancer twice

May 21,2024. The former campaign director for the Labour Party...

Africa, America recording highest gonorrhoea, syphilis cases- WHO

May 21, 2024. Azonuchechi Chukwu. The World Health Organisation on Tuesday...

Kano assembly to amend law used by former Governor Ganduje to create new emirates

May 21,2024. Kano state assembly has initiated a review of...

Why We May Not Accept N100,000 As Minimum Wage – Organized Labour Explains

May 21,2024. Organised Labour has explained why the Federal Government...

Discover more from Naija247news

Subscribe now to keep reading and get access to the full archive.

Continue reading