The United States and Nigeria have formed a Bilateral Liaison Group to counter cryptocurrency-related crimes and illicit finance.
An Oct. 23 announcement reaffirmed the United States’ dedication to working closely with Nigeria. The US Department of Justice pledged to support Nigeria in strengthening its capabilities for investigating and prosecuting cybercrimes.
While the two nations have collaborated on other initiatives in the past, this effort explicitly targets crimes involving crypto, as both countries have seen substantial crypto adoption. Recent data from Chainalysis reveals Nigeria as the second-largest crypto adopter globally, making it a leader in digital finance across Sub-Saharan Africa.
Meanwhile, the US holds a strong position in North America, driven by significant institutional activity around Bitcoin and Ethereum ETFs.
Over the past years, cryptocurrencies have gained global traction due to their ability to facilitate cheap and fast cross-border transactions. However, their decentralized and borderless nature presents unique challenges for regulators and law enforcement agencies globally as illicit actors try to leverage the technology for their illegal activities.
Blockchain analytical platform TRM Labs reported that the total illicit funds in the crypto ecosystem shrunk by 99% year-on-year to $34 billion in 2023.
Addressing crypto-related crimes
So, the Bilateral Liaison Group will serve as a joint platform where both countries can share intelligence, develop coordinated strategies, and implement actions to disrupt illicit financial networks.
Further, the platform’s focus will include strengthening investigative capabilities, enhancing intelligence exchange, boosting regulatory cooperation, and fostering public-private partnerships.
Through this group, both countries aim to establish regulatory frameworks, implement advanced monitoring tools, build law enforcement capacity, and promote public awareness. Using blockchain analytics and other technology, they intend to track and investigate crypto transactions linked to criminal activity.
Additionally, the partnership will include training for Nigerian law enforcement and initiatives to educate the public on crypto-related issues.
A successful outcome for the Bilateral Liaison Group may allow the US to form similar partnerships with other nations.
