LAGOS, Nigeria (VOICE OF NAIJA) – The International Monetary Fund (IMF) has advised Nigerian government should create a regulatory framework to allow crypto trading platforms to register or get a license to operate in the country.
This, was contained in the IMF’s latest staff 2024 article IV consultation report made available on Thursday.
IMF stressed the need for the for the country to institute a robust financial regulatory system to checkmate and control the crypto market, safeguarding investors interests and ensure stability.
According to IMF, this would curb illegal activities and damages the digital asset would do.
“Global crypto trading platforms should be registered or licensed in Nigeria and subject to the same regulatory requirements applicable to financial intermediaries following the principle of the same activity, same risk, and same regulation,” the report highlighted.
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In the last three months, cryptocurrency trading platforms have come under scrutiny on the suspicion that they were manipulating the local currency’s value in the foreign exchange market.
Recall on Monday, the SEC DG Emomotimi Agama, revealed during a meeting with cryptocurrency criticial stakeholders, that it is necessary to delist the naira from peer-to-,peer trading on all platforms as part of measures to control the control the crashing of the naira in the forex market.
The Central Bank of Nigeria had issued a warning to all fintech companies to stop customers form trading crypto on its platform
Further, the IMF also warned that the rapid growth of foreign exchange trading platforms in Nigeria poses new challenges to the country’s financial stability.
IMF further attributed the current forex crisis in the country to the rapid growth of Fx trading platforms and commended the steps employed by the apex bank to address the issue.
The report read, “The authorities agreed with the importance of maintaining external stability and emphasized that the reforms that they have implemented as well as efforts to bring in FX liquidity, including the requirement for international oil companies to hold 50 percent of repatriated oil receipts in Nigeria for 90 days, are geared towards that end.
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“They see pressure on the exchange rate now coming from illicit flows, including through crypto-asset platforms, and not being driven by fundamentals, noting that some ceilings on FX access are intended to curb abuse.”
In February, the Central Bank of Nigeria expressed concerns about the large volume of transactions passing through crypto exchange platforms from unidentified sources, stating that it is working with other government agencies to address these illicit financial activities.
The bank claimed that in the last year, $26bn passed through Binance Nigeria from unidentified sources.