US and Nigeria unite to tackle crypto crime with new liaison group

America and Nigeria have fashioned a bilateral liaison group to counter cryptocurrency-related crimes and unlawful financing.

An October 23 announcement reaffirmed the USA’ dedication to working intently with Nigeria. The US Division of Justice has pledged to help Nigeria in strengthening its capabilities to research and prosecute cybercrime.

Whereas the 2 international locations have collaborated on different initiatives up to now, this effort explicitly focuses on crimes involving crypto as each international locations have seen substantial crypto adoption. Latest knowledge from Chainalysis exhibits that Nigeria is the second largest crypto person on the earth, making it a pacesetter in digital finance in Sub-Saharan Africa.

In the meantime, the US has a robust place in North America, pushed by important institutional exercise round Bitcoin and Ethereum ETFs.

In recent times, cryptocurrencies have gained recognition worldwide as a result of their skill to allow low cost and quick cross-border transactions. Nonetheless, their decentralized and borderless nature poses distinctive challenges for regulators and regulation enforcement businesses worldwide as unlawful actors search to make use of the expertise for his or her unlawful actions.

Blockchain analytics platform TRM Labs reported that complete illicit funds within the crypto ecosystem have shrunk by 99% year-on-year to $34 billion by 2023.

Tackling crypto-related crimes

The Bilateral Liaison Group will thus function a joint platform the place each international locations can share intelligence, develop coordinated methods and implement actions to disrupt illicit monetary networks.

Moreover, the main focus of the platform can be to strengthen analysis capabilities, enhance intelligence sharing, stimulate regulatory cooperation and promote public-private partnerships.

By means of this group, each international locations intention to determine regulatory frameworks, implement superior monitoring instruments, construct regulation enforcement capability and promote public consciousness. Utilizing blockchain analytics and different expertise, they intention to trace and examine crypto transactions linked to legal exercise.

As well as, the partnership consists of coaching for Nigerian regulation enforcement and initiatives to coach the general public on crypto-related points.

A profitable final result for the Bilateral Liaison Group may permit the U.S. to forge related partnerships with different international locations.