- IMF recommends that international crypto exchanges get licenses or registrations in Nigeria.
- Crypto exchanges should adhere to the same rules that apply to banks and other institutions.
One component of Nigeria’s economic reform package is a recommendation from the International Monetary Fund (IMF) to license international crypto exchanges.
A recent report by the International Monetary Fund states that the goal of Nigeria’s effort to include crypto into its financial system is to solidify the country’s position in the African cryptocurrency industry. Importantly, it recommends that international crypto exchanges get licenses or registrations in Nigeria and adhere to the same rules that apply to banks and other financial institutions.
It states:
“Authorities should ensure the application of AML/CFT [Anti-Money Laundering and Countering the Financing of Terrorism] controls by crypto trading platforms and other virtual asset service providers through effective AML/CFT risk-based supervision.“
Boosting Economy
Net mistakes and omissions, which represent unrecorded financial transactions, are highlighted as a source of discrepancy in Nigeria’s balance of payments in the report. The paper presents first data for 2023 and finds that, despite a generally good outlook in 2020, “NEOs continue to be very large negative,” amounting to about $7.5 billion, or 2% of Nigeria’s GDP.
Since there is a large diaspora of Nigerians living abroad, the International Monetary Fund (IMF) has proposed that the country legalize and regulate cryptocurrency exchanges in order to bring in foreign investment, stabilize its financial markets, and, most importantly, enhance its remittance systems.
Coinciding with the escalating macroeconomic difficulties, including currency instability and inflation, the International Monetary Fund has endorsed the adoption of cryptocurrencies in Nigeria. The International Monetary Fund (IMF) intends to use cryptocurrency exchange licencing to facilitate safer and more efficient financial transactions.
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