Cryptocurrency and Cybersecurity in Nigeria: Assessing Nigeria’s Regulatory Response to Emerging Technologies and Financial Crimes

Faculty of Law, University of Benin, Benin City, Nigeria
Email: gakhihiero@gmail.com
Manuscript received August 14, 2024; accepted October 11, 2024; published December 24, 2024

Abstract—This paper examines Nigeria’s regulatory response to the rise of cryptocurrency and the associated cybersecurity risks. In 2021, the Central Bank of Nigeria (CBN) instructed financial institutions to discontinue facilitating cryptocurrency-related transactions, citing concerns over fraud, money laundering, and terrorism financing. This directive, perceived as an outright ban, led to significant public backlash and highlighted the need for a more nuanced regulatory approach. Subsequently, the Nigerian Securities and Exchange Commission (SEC) and the CBN have issued guidelines aimed at regulating the cryptocurrency market without stifling innovation. This paper reviews the regulatory framework, including the Cybercrime (Prohibition, Prevention, etc.) Act 2015, the Nigeria Data Protection Act 2023, and the guidelines for Virtual Asset Service Providers (VASPs). Through an analysis of recent financial crime incidents and regulatory responses, the study assesses the effectiveness of Nigeria’s approach in mitigating risks while supporting the potential benefits of blockchain technology. The paper concludes with strategic recommendations for policymakers to enhance cybersecurity and foster a robust, regulated cryptocurrency market in Nigeria.

Keywords—cryptocurrency, cybersecurity, cybercrime, cryptocurrency regulation, Central Bank of Nigeria (CBN), financial regulation, Blockchain technology, money laundering, Virtual Assets Service Providers (VASPs), Nigeria data protection act 2023, national blockchain policy, digital currency, anti-money laundering

Cite: Grace I. Akhihiero, Esq, "Cryptocurrency and Cybersecurity in Nigeria: Assessing Nigeria’s Regulatory Response to Emerging Technologies and Financial Crimes," International Journal of Blockchain Technologies and Applications vol. 2, no. 2, pp. 110-117, 2024.

Copyright © 2024 by the authors. This is an open access article distributed under the Creative Commons Attribution License which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited (CC BY 4.0).