As a seasoned analyst with extensive experience in the global financial landscape, I find this development in Nigeria both intriguing and commendable. It is evident that the Nigerian authorities are taking a firm stand against unlicensed crypto activities, which is a crucial step towards maintaining the integrity of their financial system.
In simple terms, the Nigerian government has imposed a fine of $30,000 on two cryptocurrency companies for carrying out transactions exchanging USDT (Tether) to Naira (Nigeria’s currency) without the required permit.
Based on reports from a local Nigerian news source, Nairametrics, it was found that the Federal High Court in Abuja has penalized two cryptocurrency firms, Egomsinachi Road Autos Limited and Chimera Log & Haulage Services Limited, for conducting unauthorized Tether (USDT) to naira exchange activities.
In accordance with a settlement arrangement mediated by the Economic and Financial Crimes Commission, Justice Joyce AbdulMalik instructed the implicated companies to settle a penalty of fifty million Nigerian Naira, which translates approximately to $30,000.
In addition, each company was ordered by the court to pay a fine of 500,000 Nigerian Naira (approximately $897 USD) directly to the Nigerian Federal Government.
On three separate occasions, businesses have been found guilty by the Federal High Court in Nigeria for engaging in illicit cryptocurrency trading. Specifically, the company Official Gredo was previously penalized for conducting unauthorized crypto activities and has been mandated to hand over 140 million Naira to the government.
The report pointed out that both businesses were accused of not disclosing any of their transactions to the Anti-Money Laundering Unit of the Economic and Financial Crimes Commission (EFCC), as required by Section 11(3) of the Money Laundering Prevention and Prohibition Act, 2022.
It was discovered that these two businesses were conducting USDT-to-naira trades without proper authorization, which goes against Nigeria’s financial laws and regulations.
Moreover, these companies faced allegations for functioning within the niche financial industry without valid approval, since they didn’t possess licenses to trade in the Nigerian Independent Foreign Exchange Market.
As a researcher, I’m reporting on the case: Chukwubuka Felix Ogumba, who is the director of both companies, admitted guilt to the presented charges. Subsequently, EFCC lawyer Ogechi Ujam petitioned the judge to impose the sentence as per the plea bargain agreement for the involved businesses.
Lawyer Chikaoso Ojukwu SAN, representing Ogumba, verified the terms of the plea deal and asked the court to accept it. The judge additionally instructed Ogumba to provide a sworn statement to the court detailing his good conduct.
Earlier, two Nigerian cryptocurrency companies, Paparaxy Global Ventures Limited and Lemskin Technologies Limited, were directed to pay 160 million Nigerian Naira (approximately $95,661) to the government, following allegations of illegal transaction activities.
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2024-11-08 17:20