With the growing adoption of cryptocurrency, it is unyielding to maintain the idiosyncrasy that cryptocurrency is another financial bubble that will soon burst. Cryptocurrency has become widely adopted by investors, merchants, and even educational institutions. This has created a demand for cryptocurrency either as a store of value, to make payments and even for remittances. However, unscrupulous characters have been able to use cryptocurrency for a myriad of criminal activities. This has forced the hands of various stakeholders in the cryptocurrency ecosystem to apply traditional Anti-Money Laundering and Combatting the Financing of Terrorism (AML/CFT) regulations to cryptocurrency. This article seeks to explore why AML/CFT regulations have been adopted in the world of cryptocurrency and ends with a reflection on whether regulations for traditional financial institutions can effectively be used on a system that promises to break away from centralization.
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UNILAG Law Review, (2022) Volume 5 Edition 2
About the Author
Oluwapelumi C. Omoniyi is a lawyer that advises start-ups and companies that leverage technology. He is passionate about fintech, technology and dynamic products that change the way the world works. When he isn’t working as a Compliance Analyst at a central counterparty that mitigates risks in the Nigerian capital market, he is reading about the economy, technology, and Web3 with a movie or anime on his screen. He can be reached at email@example.com