The International Monetary Fund has urged the Nigerian government to direct global crypto trading platforms to register or obtain licences before operating in the country.
This was disclosed by the Fund in the Article IV Staff Consultation Report of the Board of Governors of the global organization, published in Washington on Thursday, according to Channels News.
The report stated that compelling the global crypto trading platforms to register will subject them to regulatory requirements.
The IMF has stressed the need for Nigeria to establish a robust regulatory framework that can monitor and ensure financial stability as well as protect investors in growing cryptocurrency markets.
In addition, the move is in line with the global efforts to standardize the rules on cryptocurrency and to prevent illicit activities.
“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.
The IMF noted that Nigeria’s authorities have made important progress in addressing issues related to cryptocurrency trading platforms so far this year.
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 per cent of repatriated oil receipts in Nigeria for 90 days, are geared towards that end.
“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.”
Recall the Central Bank of Nigeria recently blocked the online platforms of Binance and other crypto firms to avert what it considers continuous manipulation of the forex market and illicit movement of funds.
The CBN expressed concerns about the large volume of transactions passing through crypto exchange platforms from unidentified sources, adding that it is working with other government agencies to address these illicit financial activities.
The apex bank stated that over $26 billion that flowed through Binance Nigeria in the past year are from “unidentified sources”.
