Newsdiaryonline Nigeria
  • Home
  • News
    • World
    • Sports
    • Society News
    • Art
    • Videos
    • LIVE BLOG
  • Politics
  • Business
    • Agriculture
    • Industry
    • Oil & Gas
    • Technology
  • Security
    • Defence
    • Crime & Police
  • Anti-Graft
    • Judiciary
    • Eagle Eye
  • Reports
    • Education
    • Analysis
    • Exclusive Reports
    • Press Statements / Releases
    • Interviews
    • Project
  • Columns
    • Adagbo Onoja
    • Akintokunbo Adejumo
    • Africa
    • Society News
    • Ali M. Ali
    • Azu Ishiekwene
    • Dan Agbese
    • Dele Agekameh
    • Femi Adesina
    • Garba Shehu
    • Hakeem Baba-Ahmed
    • Issa Aremu
    • Jaye Gaskia
    • Jibrin Ibrahim
    • Nasir El-Rufai
    • Politics
    • Reuben Abati
    • Zainab Suleiman Okino
  • ADVERT RATES
    • Contact Us
    • About Us
  • COVID-19
    • Health
Accountant General
   PTF on Covid-19
NLNG celebrates Nigeria at 60

Virtual assets, cryptocurrencies risky for Nigeria – ICPC boss

February 23, 2021 Danlami Nmodu Business, News, Technology 0



 

 

 

The Chairman of the Independent Corrupt Practices and Other Related Offences Commission (ICPC), Prof. Bolaji Owasanoye, SAN, on Tuesday said virtual assets and cryptocurrencies are risky for implementation in Nigeria.

 

Prof. Owasanoye made this known in his presentation to the Senate Committee on Banking, Insurance and Other Financial Institutions during its hearing on the Central Bank of Nigeria’s decision to stop financial institutions from transacting in cryptocurrencies and matters arising therefrom.

 

He said, “Virtual and cryptocurrencies pose serious legal and law enforcement risks for Nigeria. The current National Identification Number registration and linking with SIM cards is a pointer to the fact that insurgents, terrorists, kidnappers, bandits, and drug merchants have used the anonymity of unregistered SIM cards to commit their crimes with relative ease.

 

“Cryptocurrencies guarantee similar anonymity and can easily be used as leverage for terrorist financing and other crimes. With the NIN registration, cryptocurrencies may become an alternative payment platform for kidnappers and this would be impossible for law enforcement to agencies to trace.”

 

The ICPC boss cited a case study of a current investigation by the Commission on money laundering involving several hundreds of millions of naira.

 

According to him, “The main suspect used technology in placing the money in the banking sector. A sizable amount was traced to several bank accounts but before investigators recovered some of the money, a large proportion had been made to disappear using serpentine ICT-aided transfer schemes that has so far eluded investigators.

 

“While the persons whose accounts were used have been located, the criminal mastermind has remained invisible and unidentified.

 

“This real ongoing case is a glimpse into the world of anonymity of virtual or digital transactions. With cryptocurrencies, the wallet of the user of cryptocurrency system only store information, or encrypted links in the Blockchain where transaction confirmation can be found.

 

“There is no movement of any ‘currency’ in the real sense of the word. By their very nature, they provide considerable anonymity that is almost impossible to be accessed by unauthorized persons, including law enforcement authorities.”

 

Prof. Owasanoye identified the use of virtual assets and cryptocurrencies for criminal activities as a major risk associated with them.

 

“The use for criminal activities is the most obvious risk of virtual assets and cryptocurrencies. It has been reported that ‘criminally associated bitcoin addresses sent over $3.5 billion worth of bitcoin in 2020’.

 

“This figure includes BTC addresses controlled by dark markets, ransomeware actors, hackers, and fraudsters. Most of this bitcoin will ultimately need to be laundered by these criminals, meaning it will make its way to an exchange where it can be converted to fiat currency and transferred to a bank,” the ICPC chairman said.

 

He also listed other risks of the use of virtual assets and cryptocurrencies to include: risk to finance of government, risk of theft of cryptocurrencies, abuse as medium of payment for hackers and ransomeware, risk of exit scams, risks of use of crypto assets for ponzi schemes, risks of tax evasion, and risk as a source of corruption-linked illicit financial flows.

 

He further noted that the Central Bank of Nigeria’s ability to regulate monetary policy will be lost due to the fact that cryptocurrencies are issued by private entities, which are foreign, and not issued or regulated by the bank.

 

“It is plausible that we cannot wish virtual assets away. Central Banks in many jurisdictions are considering floating officially recognized cryptocurrencies. Whether the time is right for the Central Bank of Nigeria to follow suit is anybody’s guess, but legal guidance is needed if any fresh initiative in that direction is to have legal force,” he added.

 

 

Share this:

  • Tweet
  • Telegram
  • Print
  • WhatsApp

Related

Tags: Accord, account, accounts, age, air, all, alternative, amount, are, Bank, before, Billion, but, ce, Chairman, change, class, Commission, content, Corruption, cover, crypto, cryptocurrencies, Cryptocurrency, Drug, enforce, exit, financial, financing, floating, Guarantee, him, Hundreds, Insurance, ISA, kidnapper, leg, make, may be, Money laundering, most, MP, Nigeria, NIN, note, number, platform, possible, practice, rent, report, reported, sent, similar, tr, up, very, virtual, wil, would, y to
  • Accord
  • account
  • accounts
  • age
  • air
  • all
  • alternative
  • amount
  • are
  • Bank
  • before
  • Billion
  • but
  • ce
  • Chairman
  • change
  • class
  • Commission
  • content
  • Corruption
  • cover
  • crypto
  • cryptocurrencies
  • Cryptocurrency
  • Drug
  • enforce
  • exit
  • financial
  • financing
  • floating
  • Guarantee
  • him
  • Hundreds
  • Insurance
  • ISA
  • kidnapper
  • leg
  • make
  • may be
  • Money laundering
  • most
  • MP
  • Nigeria
  • NIN
  • note
  • number
  • platform
  • possible
  • practice
  • rent
  • report
  • reported
  • sent
  • similar
  • tr
  • up
  • very
  • virtual
  • wil
  • would
  • y to
Previous

Still on the Cryptocurrency Ban, By Gimba Kakanda

Next

Stop bribing our patrol men, FRSC warns, arrests 305 offenders

Trending

  • Bawa hands over Lagos Office to Sabir
    Bawa hands over Lagos Office to Sabir
  • Obasanjo, Governor Yahaya Bello, in closed door meeting
    Obasanjo, Governor Yahaya Bello, in closed door meeting
  • NNPC says no fuel price increase in March, cautions against hoarding, panic buying
    NNPC says no fuel price increase in March, cautions against hoarding, panic buying
  • Kebbi State University shut down over student’s death — Official
    Kebbi State University shut down over student’s death — Official
  • The North and the effect of Janus, By Hassan Gimba
    The North and the effect of Janus, By Hassan Gimba
  • Zamfara abducted school girls will be released soon–Matawalle
    Zamfara abducted school girls will be released soon–Matawalle
  • Kaduna: Bandits  attack, kill seven in Igabi - Official
    Kaduna: Bandits  attack, kill seven in Igabi - Official
  • DSS arrests Tanko-Yakassai over issues beyond expression of opinion – PRO
    DSS arrests Tanko-Yakassai over issues beyond expression of opinion – PRO
  • Transborder drug trafficker arrested in Sokoto with N1bn worth of cocaine
    Transborder drug trafficker arrested in Sokoto with N1bn worth of cocaine
  • Dangote grooms Nigerian engineers to manage refinery complex
    Dangote grooms Nigerian engineers to manage refinery complex

FIRS

Nigeria Covid-19 Festive Period advice

FCT Covid-19 Second Wave

oga truck

NNPC Report

 

CBN Advert

 

Recent Updates

  • APC chieftain, Olaosebikan, lauds President Buhari as Okonjo-Iweala assumes WTO job
  • NNPP joins APC in Bauchi
  • FCTA, security agencies deploy 100 operatives to arrest traffic violators
  • Veteran Nollywood actor ‘Kanayo O Kanayo’ celebrates 59th birthday
  • Apologise to Ikpeazu, South East PDP tells Sen. Adeyemi
  • NDLEA warns patent medicines vendors against illegal practices
  • Bakassi council presents N9.6bn 2021 appropriation bill
  • Farouq revalidates APC membership
  • Akeredolu appoints aides for second term
  • Igbos can’t afford another war — Uwazurike
  • More than 300 nominations for 2021 Nobel peace prize
  • Health Minister begs citizens to have faith on COVID-19 vaccine
  • NYSC partners private sectors on skill acquisition
  • Court remands man, 62, over alleged theft
  • Work with UN special envoy to reach peaceful resolution in Yemen – Guterres
  • NSE resumes March with N69bn growth amid uptick in BUA Cement
  • Buhari receives briefing on Zamfara schoolgirls’ abduction
  • Osinbajo tasks NIPSS on failed policies, projects
  • Marwa urges support of traditional, religious leaders in fight against drug abuse
  • ECOWAS Parliament supports Mali’s transition to democratic rule – Speaker

Follow Newsdiaryonline

Follow @newsdiaryonline


Tweets by newsdiaryonline

GOCOP

PR NIGERIA

Chibok girl’s Mother In Face-off with Buhari’s Aide As Police Stops Protest To Villa

https://youtu.be/4dzePqvWoKA

Like Newsdiaryonline

Like Newsdiaryonline

Copyright © 2021 | Newsdiaryonline published by Newsdiary Communications Limited