The International Monetary Fund (IMF) has recommended that Nigeria require global cryptocurrency trading platforms to register or obtain licenses to operate within the country, subjecting them to regulatory oversight.
This suggestion was outlined in the IMF’s latest staff report released on Thursday, following its 2024 Article IV consultation with Nigeria.
Stressing the importance of establishing a comprehensive regulatory framework, the IMF aims to supervise the burgeoning cryptocurrency market to ensure financial stability and investor protection.
This initiative aligns with global endeavors to standardize cryptocurrency regulations and curb illicit activities. Specifically, the report highlighted the need for global crypto trading platforms to adhere to the same regulatory standards as financial intermediaries, underlining the principle of equal treatment for similar activities and risks.
Recent scrutiny has focused on cryptocurrency trading platforms amid suspicions of manipulating the value of the local currency in the foreign exchange market over the past three months. Emomotimi Agama, the Director General of the Securities and Exchange Commission, emphasized the necessity of delisting the naira from peer-to-peer platforms to mitigate ongoing manipulation.
The Central Bank of Nigeria previously instructed fintech companies to block accounts engaging in cryptocurrency transactions and report such activities to law enforcement agencies.
Additionally, the IMF cautioned that the rapid expansion of foreign exchange trading platforms in Nigeria presents new challenges to the country’s financial stability.
