IMF Advises Nigeria to Implement Regulations for Cryptocurrency Trading Platforms
“`html
The IMF advised Nigeria to regulate cryptocurrency trading platforms on May 10, following Nigeria’s apprehension of two Binance leaders, as reported by United Nations staff on Thursday.
IMF Recommends Nigeria Enforce Regulation on Crypto Trading Sites
“Staff suggest that international crypto trading platforms should be obligated to register or obtain licensure within Nigeria and comply with similar regulatory measures as financial intermediaries, based on the concept of identical activity, identical risk, and identical regulation,” the review stated.
Faced with a looming financial downturn, Nigeria’s economy, which was previously the largest in Africa, is now predicted to fall to the fourth position continentally.
Read more
IMF calls for the registration and licensing of international crypto trading portals in Nigeria –
https://t.co/0dbNEJ2bEl
pic.twitter.com/ublzBVMyIe— Nairametrics (@Nairametrics)
May 10, 2024
In spite of inflation in Nigeria hitting almost a 28-year peak, the IMF’s summary indicates that the national currency is beginning to gain stability.
“The naira’s value fell significantly post the consolidation of official foreign exchange markets in June 2023,” the IMF acknowledged. “Subsequent to the hardening of monetary policy in February and March 2024, in addition to the reintroduction of FX interventions, the naira has shown signs of stabilizing.”
Binance Chiefs Held During Nigerian Crypto Regulatory Push
Recently, Nigeria has enhanced scrutiny on virtual assets. The nation is poised to forbid peer-to-peer payment methods shortly, aimed at curbing financial manipulation.
Discover more
Additionally, state actors have ascribed the debilitation of the naira to digital currencies.
Nigerian Central Bank Governor Olayemi Cardoso accused in February that about $26 billion in illegitimate funds were circulated via Binance Nigeria in 2023 alone.
Learn more
“There are certain actions that indicate illegal transactions through several entities and, at best, questionable flows. We cannot fully trace the sources and users of $26 billion that went through Binance Nigeria,” proclaimed Cardoso.
Questions arise about the nation’s apprehension of two Binance executives, Nadeem Anjarwalla and Tigran Gambaryan, on charges of money laundering and tax evasion associated with the cryptocurrency exchange’s activities.
Both Anjwarwalla and Gambaryan were engaged in regulatory dialogues in Nigeria when they encountered complications with the local authorities.
Early this week, Binance CEO Richard Teng divulged that undisclosed individuals had suggested a confidential settlement to address the pressing issues between the crypto exchange staff and Nigerian authorities.
Find out more
Binance declined any secretive agreement, which eventually led to the detention of Anjarwalla and Gambaryan. They are scheduled to appear in court in Abuja for a hearing on May 17.
While the legality of the Binance leaders’ arrest remains ambiguous, the latest IMF staff document suggests a prospective upsurge in foreign crypto exchanges within Nigeria.
“`
Source link
#IMF #Tells #Nigeria #Regulate #Crypto #Trading #Platforms
