Regulating the Crypto Market in Nigeria
Selected Issues Papers, July 11, 2025
Source details
- Canonical URL
- Regulating the Crypto Market in Nigeria
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Bibliographic details
- Authors: Jose De Luna Martinez, Deeksha Kale
- Published: July 11, 2025
- Series: Selected Issues Papers
- DOI: https://doi.org/10.5089/9798229018555.018
Overview and key findings
- Trading of crypto assets has surged among individuals and businesses in Nigeria.
- Authorities are strengthening the regulatory and supervisory framework for crypto assets to address potential risks including:
- undetected capital outflows and currency speculation;
- money laundering;
- terrorism financing;
- consumer fraud.
- Moving forward, authorities should enforce the framework by:
- identifying unlicensed crypto firms and preventing them from operating in Nigeria;
- collecting taxes on capital gains;
- preventing crypto platforms from serving as informal channels to bypass capital flow restrictions.
- Authorities should also:
- continue to develop robust analytical tools for effective market surveillance;
- ensure AML/CFT supervisory activity commensurate with money laundering and terrorism financing risks;
- actively cooperate and share information with international counterparts.
Risks identified
- Undetected capital outflows and currency speculation linked to crypto trading.
- Money laundering risks associated with crypto asset transactions.
- Terrorism financing risks connected to crypto usage.
- Consumer fraud stemming from crypto market activities.
Policy recommendations and enforcement actions
- Identify and prevent unlicensed crypto firms from operating in Nigeria.
- Collect taxes on capital gains from crypto transactions.
- Prevent crypto platforms from being used to bypass capital flow restrictions.
- Develop and deploy robust analytical tools for market surveillance.
- Ensure AML/CFT supervisory activity matches the assessed money laundering and terrorism financing risks.
- Actively cooperate and share information with international counterparts.
Subject areas and keywords (as listed)
- Subject: Anti-money laundering and combating the financing of terrorism (AML/CFT), Crime, Currencies, Digital wallets, Exchange rates, Foreign exchange, Money, Technology
- Keywords: Anti-money laundering and combating the financing of terrorism (AML/CFT), Crypto, crypto market, Currencies, Cyrpto market, Digital Assets, Digital wallets, Exchange rates, Financial Service, Global, market premium, Securities, Stablecoin, terrorism financing risk, trading of crypto asset
Content in this bundle
- Regulating the Crypto Market in Nigeria; IMF Selected Issues Paper No. 2025/096; July 11, 2025