In a statement released yesterday, the Central Bank of Nigeria (CBN) clarified that the regulation of cryptocurrency transactions is the responsibility of the Securities and Exchange Commission (SEC), not the CBN. The CBN stated that its role is to provide oversight of the financial system and ensure the safety and soundness of the banking sector, not to regulate cryptocurrency transactions.
The statement comes in response to recent statements made by the former Assistant Director of the Department of State Services (DSS), Dennis Amachree. Amachree had stated that the Office of the National Security Adviser (ONSA) should have transferred Nadeem Anjarwalla to the Economic and Financial Crimes Commission, EFCC, or the DSS for custody.
On the issue of the Binance executive, Nadeem Anjarwalla, who fled Nigeria after his arrest, the CBN governor, Olayemi Cardoso, stated that collaboration with the SEC, the EFCC, and the Office of the National Security Adviser (ONSA) has yielded positive outcomes in the last month.
Cardoso noted that the CBN is working closely with these agencies to address issues related to the cryptocurrency sector, including the case of Anjarwalla. He also stressed the importance of the public’s cooperation in reporting suspicious activities and sharing information that could help in the ongoing investigations.
The CBN governor’s comments came on the heels of recent developments in the cryptocurrency sector in Nigeria. Anjarwalla’s escape sparked public outcry and questions about the effectiveness of the government’s efforts to regulate the industry. The ONSA has since come under fire for not being more proactive in detaining and investigating Anjarwalla.
The issue of cryptocurrency regulation is a controversial one in Nigeria, with some arguing that the CBN and other government agencies are not doing enough to regulate the sector. Others have called for greater collaboration between the CBN, SEC, and EFCC to ensure that the industry is properly regulated.
In response to a question regarding CBN’s update on Binance, a cryptocurrency exchange platform that has been under scrutiny by the federal government since last month’s MPC meeting, CBN governor Olayemi Cardoso said, “We view ourselves as having the resources and ability to collaborate with other government agencies, and that is a very important function for us.”
At the last MPC meeting, Cardoso had stated that $26 billion worth of suspicious transactions had passed through Binance in 2022.
Last month, the Office of the National Security Adviser (NSA) detained two executives from Binance who were in the country to discuss matters with the government. When asked about the status of the case, Cardoso said that “what has come out of the collaboration is a work in progress, but it is very positive from what I can say. We have been sharing information with the NSA. However, in this particular case, the regulation of cryptocurrency is not our responsibility – it is the responsibility of the Securities and Exchange Commission (SEC).”
The CBN’s position on cryptocurrency regulation has been a topic of discussion and debate in Nigeria.
A suspect, Nadeem Anjarwalla, escaped from custody and the government has since launched a manhunt for him, contacting Interpol. Dennis Amachree, a former Assistant Director of the Department of State Services (DSS), said yesterday that the Office of the National Security Adviser (NSA) is not a security agency with a detention facility, and that the suspect should have been transferred to the Economic and Financial Crimes Commission (EFCC) or the DSS for custody.
Amachree stated that the role of the NSA is to provide advice and information to the government on national security matters, and that it does not have the authority to detain suspects. He noted that this is an issue of national security, and it is important for the government to take the necessary steps to apprehend the suspect and bring him to justice.
Dennis Amachree, a former Assistant Director of the Department of State Services (DSS), who appeared as a guest on Channels Television’s “Politics Today” program on Monday night, stated that the suspect, Nadeem Anjarwalla, and his colleague, Tigran Gambaryan, should have been placed on a watch list when they were detained in Abuja in late February. According to Amachree, Anjarwalla and Gambaryan should have been placed on a watchlist with the Nigeria Immigration Service (NIS), with their photos and names flagged at all airports across the country.
Amachree expressed concern that the NSA allowed the suspect to escape from custody, and said that it raises questions about the competence and capability of the agency. He called for a review of the security architecture and urged the government to ensure that the NSA is properly resourced and equipped to carry out its mandate effectively.
The case of Nadeem Anjarwalla highlights the challenges of dealing with digital crimes and transnational organized crime, which require coordinated action by multiple agencies across different jurisdictions. Amachree said that the government must strengthen collaboration between domestic and international agencies to effectively tackle these challenges.
In his comments, Amachree pointed out that if the suspect had been flagged as a threat or suspected individual, he should have been placed on a watchlist. Amachree questioned whether the NSA has the authority to detain suspects, noting that the NSA is an advisory body to the president. He questioned whether the suspect should have been held by the EFCC or the DSS instead of a guest house where he had access to a telephone. He said that it was wrong to allow the suspect to go to a mosque to pray, and that there are “a lot of loopholes and lapses” in the way the situation was handled.
