The International Monetary Fund (IMF) has issued a warning about Nigeria's rapidly growing cryptocurrency market, which saw an estimated $59 billion in inflows between July 2023 and June 2024.
This massive influx of funds into the country's crypto sector has raised concerns that it could fuel illicit financing and money laundering if left inadequately regulated. The IMF noted that while stablecoins have emerged as a key channel for cross-border payments, remittances, and financial inclusion in Nigeria, their increasing use outside traditional banking systems poses significant risks to financial integrity and monetary stability.
The report highlights the speed and anonymity of some digital asset platforms, which can make them attractive for illicit activities. The IMF stressed that monitoring systems designed for traditional intermediaries may not capture these transactions effectively.