Unregulated crypto poses national security threat, EFCC cautions
The Economic and Financial Crimes Commission (EFCC) has warned that unregulated cryptocurrency transactions could pose serious risks to Nigeria’s national security, stressing the urgent need for a clear regulatory framework to govern the sector.
EFCC Chairman Ola Olukoyede issued the caution in Abuja on Wednesday during a courtesy visit by the Stakeholders in Blockchain Technology Association of Nigeria (SiBAN), led by its president, Obinna Iwuno. Represented by his Chief of Staff, CE Michael Nzekwe, Olukoyede described cryptocurrency as “the new oil,” highlighting its potential but also its susceptibility to fraudulent abuse.
He noted that politically exposed persons and criminal actors are increasingly exploiting digital assets for money laundering, adding that even genuine operators could inadvertently fall into illegality without proper oversight. “We want to ensure that we have a clean economy. We can collaborate to stop money laundering. You can be a whistleblower,” he said.
Olukoyede urged players in the crypto space to step up investor education and work with regulators to report suspicious activities that undermine the economy.
Responding, Iwuno said SiBAN has already drafted a code of ethics for operators based on international best practices to promote transparency and accountability. He stressed that the association has been advocating regulation since 2018 to prevent capital flight and protect investors from fraud.
The SiBAN president also called for deeper collaboration with the EFCC in areas such as education, anti-scam campaigns, and fraud detection. He noted that SiBAN requires platforms to implement Know Your Customer (KYC) procedures and employ compliance officers to ensure oversight.
While backing regulation, Iwuno emphasized that rules should not stifle innovation. He warned that Nigeria’s fast-growing digital asset ecosystem, if left unchecked, could expose the country to terrorism financing, money laundering, and other threats to national security.
Both parties pledged to work together to strike a balance between innovation and regulation, ensuring Nigeria harnesses the opportunities of cryptocurrency and blockchain technology while safeguarding its financial system.
