Good day everybody,
Welcome to CryptoGod-1's blog on all things crypto. In this post I will be looking at the recent news of Nigeria updating their guidelines for crypto service providers in the nation.
Nigerian SEC
The Nigerian securities watchdog has updated its guidelines for crypto service providers which will look to block any criminals from engaging with capital markets. The government took these steps to block local access to a number of cryptocurrency platforms as reported by the Nigerian daily newspaper The Punch on Thursday the 2nd of May 2024.
The report noted how over the previous two weeks Nigeria's government has demanded $10 billion from Binance in penalties for enabling $26 billion in untraceable funds to be processed in the country. The Securities and Exchange Commission (SEC) of Nigeria has already blocked local access to several crypto platforms, including Binance, Kraken and Coinbase according to the report. The Nigerian SEC had also issued warnings over the last year that the exchange's activities in the country were illegal. In the last month two Binance executives were also detained after they flew to Nigeria on the government's invitation.
The latest guidance, which also includes a manual on anti-money laundering (AML) measures and rules on combating the financing of terrorism (CFT), is aimed at ensuring criminals wont be able to gain entry into the country’s capital market. Back on the 4th of March 2024 a Nigerian SEC notice read:
“The SEC has also developed new AML/CFT/CPF onboarding manual for licensing/registration and ongoing screening of Digital and VASP Beneficial Owners to ensure that criminals are not registered as operators in the capital market. The SEC is ready to interface with genuine VASPs based on these clear rules and regulations.”
Despite its most recent crackdown on the crypto space, the Central Bank of Nigeria recently reversed a measure which blocked local banks from making use of or providing services and accounts to cryptocurrency firms. Before any final approvals are put in place the SEC will consult on its proposed measures.
Have a great day.
Peace. CryptoGod-1.
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