Cryptocurrency and Anti-Money-Laundering Effectiveness in Nigeria: The Role of Awareness and Institutional Experience

This study examines perceived anti-money laundering (AML) effectiveness in the context of cryptocurrency usage in Nigeria, with particular emphasis on perceived regulatory awareness and institutional experience. As cryptocurrency adoption continues to expand in developing economies, concerns have emerged regarding the capacity of existing regulatory frameworks to effectively monitor and control illicit financial activities. A quantitative research design was adopted using structured questionnaires administered to regulatory stakeholders, including personnel from the Nigeria Police Force (NPF) and the Economic and Financial Crimes Commission (EFCC). Data were analysed using statistical techniques, including analysis of variance and regression analysis, to assess differences in perceived AML effectiveness and its association with awareness and experience. The findings indicate that perceived regulatory awareness and institutional experience were not significantly associated with perceived AML effectiveness. This suggests that perceived regulatory awareness and institutional experience alone may have limited explanatory value for differences in perceived AML effectiveness in the context of cryptocurrency-related financial crime. The results indicate that perceived regulatory awareness and institutional experience explain only a small proportion of the variation in perceived AML effectiveness. The study contributes to the literature by providing evidence on regulatory stakeholders’ perceptions of AML effectiveness and the roles of perceived regulatory awareness and institutional experience within Nigeria’s cryptocurrency context.