The House of Representatives has set up an ad hoc committee to examine the economic, regulatory, and security implications of cryptocurrency adoption and Point-of-Sale (POS) operations in Nigeria, amid rising concerns about cybercrime, money laundering, and terrorism financing linked to digital financial platforms.
Speaker Abbas Tajudeen, who inaugurated the committee on Monday in Abuja, said the decision followed growing cases of fraud and consumer exploitation in the country’s expanding digital finance ecosystem.He noted that while Nigeria’s economy has shown resilience and potential for supporting cryptocurrency innovation, the absence of clear regulations and the risks of illicit financial activities necessitated the move.
Abbas explained that the unregulated nature of cryptocurrency operations, coupled with their volatility and technological complexity, compelled the House to act by developing a framework to regulate Virtual Asset Service Providers (VASPs), including cryptocurrencies and crypto-assets.
He said Nigeria’s non-oil sector growth had positioned it as a potential hub for digital finance but warned that the vulnerabilities of unregulated digital currencies could undermine financial stability if left unchecked. “It is because of this absence of clear rules, coupled with the volatility and complexity of the technology, that the House of Representatives found it imperative to establish regulations and consumer protection measures that will regulate the activities of Virtual Assets Service Providers, including cryptocurrencies and crypto assets,” Abbas stated.
He added that the committee would conduct public hearings to gather input from stakeholders, which would inform legislation aimed at building a comprehensive regulatory framework for cryptocurrency and other digital finance platforms.The Speaker urged committee members to carry out their assignment with patriotism and integrity, ensuring that their recommendations align with national interests.
Committee Chairman Olufemi Bamisile (APC–Ekiti) described the assignment as crucial to balancing financial innovation with national security.“We have been entrusted with a task of national significance — to review the economic, regulatory, and security implications of cryptocurrency adoption and Point-of-Sale operations in Nigeria,” Bamisile said.
He noted that the committee would work closely with key institutions, including the Central Bank of Nigeria (CBN), Securities and Exchange Commission (SEC), Nigeria Deposit Insurance Corporation (NDIC), Nigerian Financial Intelligence Unit (NFIU), Economic and Financial Crimes Commission (EFCC), Independent Corrupt Practices and Other Related Offences Commission (ICPC), and the Nigeria Police Force.
Source: https://guardian.ng/
