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NoOnes CEO Ray Youssef Supports IMF on Cryptocurrency Regulation in Nigeria – Tech | Business
Ray YoussefCEO of Nobodya cryptocurrency market, believes that the recent requests from the International Monetary Fund (IMF) Nigeria licensing global cryptocurrency exchanges is a step the West African country should follow.
Techeconomy reported on the IMF’s recommendation that global cryptocurrency trading platforms should be registered or licensed in Nigeria and subject to regulatory requirements.
The body made this recommendation, in its recent country staff report on Nigeria, warning that the rapid growth of foreign exchange (FX) trading platforms in Nigeria poses new challenges to the country’s financial stability.
The IMF also noted that Nigerian authorities took significant steps in late February to address issues related to cryptocurrency trading platforms.
The report reads: “Staff recommends that global cryptocurrency trading platforms be registered or licensed in Nigeria and subject to the same regulatory requirements applicable to financial intermediaries following the principle of same business, same risk and same regulation.”
The IMF also urged Nigerian authorities to strengthen preventive anti-money laundering and countering the financing of terrorism (AML/CFT) controls on cryptocurrency trading platforms.
He highlighted the need for effective risk-based supervision of these platforms and other virtual asset service providers.
During discussions with the IMF team, Nigerian authorities emphasized the need to stabilize the forex market through crucial reforms.
Recognizing the growing pressure on the exchange rate due to illicit flows through crypto platforms, authorities have highlighted the importance of maintaining external stability.
They pointed out that recent reforms and efforts to attract foreign exchange liquidity, including a mandate requiring international oil companies to retain 50% of oil revenues repatriated to Nigeria for 90 days, were designed to achieve this goal.
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The Nigerian government has admitted that illicit flows through cryptocurrency platforms are putting undue pressure on the exchange rate.
As a result, authorities have moved to implement stricter controls on crypto platforms and strengthen compliance with existing FX regulations.
The report said:
“The authorities agreed with the importance of maintaining external stability and stressed that the reforms they have implemented as well as efforts to bring in foreign currency liquidity, including the requirement for international oil companies to retain 50% of revenues oil companies repatriated to Nigeria for 90 days – are oriented towards this purpose. They believe the pressure on the exchange rate now comes from illicit flows, including through cryptocurrency platforms, and is not driven by fundamentals, pointing out that some caps on forex access are intended to curb abuse.
For example, South Africa has been reported to be at the forefront of cryptocurrency regulation by licensing around 60 digital asset platforms, positioning itself as one of the first nations on the continent to impose permits for cryptocurrency exchanges.
As Nigeria accounts for approximately 66.8% of Africa’s cryptocurrency interests, the Office of the National Security Adviser (ONSA) has classified cryptocurrency trading as a national security issue.
Additionally, the Central Bank of Nigeria (CBN) has directed four fintech startups operating in the country: Opay, Moniepoint, PageAND PalmPay—block the accounts of customers who make cryptocurrency transactions and report such transactions to law enforcement. [The fintech companies have now been allowed to resume new customer onboarding].
Furthermore, around February this year, the cryptocurrency trading platform, Binancehad to disable its peer-to-peer functionality for Nigerian users as it came under the spotlight of the Nigerian government over allegations of currency manipulation and money laundering.
Meanwhile, the Nigerian Securities and Exchange Commission (SEC), during a virtual meeting with the Blockchain Industry Coordinating Committee of Nigeria (BICCoN), called for a new cryptocurrency measure that aims to remove the naira, a currency pair, from cryptocurrencies peer to peer. platforms.
Commenting on this development, particularly through the IMF recommendations, Ray Youssef, the NobodyThe CEO said:
“The strategy adopted by Western institutions, particularly in Africa’s largest economy, could inhibit Nigerian fintech innovation. This approach mirrors regulatory frameworks such as New York’s Bit License, which has resulted in a significant shift of talent and capital from both New York and the United States at large. Such policies could undermine the vibrancy of the Nigerian sector, particularly in the thriving P2P cryptocurrency markets that have introduced significant liquidity.
There is the possibility of facing restrictive measures similar to those associated with central bank digital currencies (CBDCs), which have been widely opposed in Nigeria due to the preference for decentralized alternatives such as Bitcoin P2P and other cryptocurrencies. It is critical to the continued evolution of P2P platforms, as they are key to unlocking the potential of pan-African trade.”
Nobody is a fast-growing African cryptocurrency market with over 400,000 users in its largest markets, including Nigeria, Cameroon, Ghana, India, and the Philippines.
Despite only launching last year, NoOnes has seen impressive growth with over 200,000 app downloads, and Ray brings with him over 20 years of experience building peer-to-peer focused businesses.
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