The Federal Government, through the Office of the National Security Adviser (NSA), is poised to summon and interrogate executives from various cryptocurrency platforms across the country following the recent questioning of two Binance executives.
According to sources, the move comes in the wake of heightened scrutiny on cryptocurrency operations in Nigeria.
The Financial Times on Wednesday, disclosed the detention of two senior Binance executives in the country.
Sources privy to the matter have confirmed that additional cryptocurrency operators will be summoned to explain their operations in Nigeria as part of the ongoing crackdown initiated after a report by the Nigerian Financial Intelligence Unit (NFIU).
The report flagged cryptocurrency platforms as potential avenues for terrorism financing and other illicit activities, posing threats to the national security and the stability of the Naira.
National Security Adviser, Nuhu Ribadu, is reportedly spearheading the implementation of the report’s recommendations, aiming to address corruption facilitated by cryptocurrency platforms.
Recent actions by the Federal Government included the restriction of trading on cryptocurrency platforms and directives to telcos to block access to their websites, impacting platforms like Binance, OctaFx, and Coinbase.
The detention of the Binance executives, one American and one British-Pakistani, coincided with revelations by the Governor of the Central Bank of Nigeria, Yemi Cardoso. Cardoso disclosed that $26 billion had flowed through Binance Nigeria in the past year from unidentified sources, raising concerns about illicit financial flows.
The ongoing crackdown, coordinated by a task team comprising the NSA’s office, the Central Bank of Nigeria, the Nigeria Police Force, the Economic and Financial Crimes Commission, the Nigeria Customs Service, and the NFIU, aims to deter illicit activities detrimental to Nigeria’s financial system.
The Federal Government’s actions underscore its commitment to safeguarding the integrity of the financial system and curtailing illicit financial activities facilitated through cryptocurrency platforms.
