Latest News
Nigerian Lawmakers Move to Regulate Crypto, PoS Over Fraud and Security Risks
The House of Representatives has commenced the move to review the economic, regulatory, and security implications of cryptocurrency adoption and point-of-sale (PoS) operations in Nigeria.
To this end, the Speaker, Hon. Tajudeen Abbas, on Monday, in Abuja, inaugurated an Ad hoc Committee to carry out the task.
The Speaker, while speaking at the inauguration of the committee, became imperative following growing concerns of fraud, cybercrime, and consumer exploitation in the digital finance space.
He emphasised that there were real concerns about its susceptibility to terrorism financing and money laundering, considering its opaque nature, dubious regulatory framework, unclear governance structure, and lack of accountability.
Abbas, however, said the vulnerability inherent in cryptocurrency operations cannot be underestimated.
He stated: “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.
“This Ad-Hoc Committee is therefore necessary. Its main job is to undertake public hearings to collate relevant information from stakeholders that will guide the House in developing legislation for a regulatory framework for the adoption of the currency in our economy.
“Its work will also guide the House in its oversight functions as they concern the use of digital currency in Nigeria.”
Earlier, the Chairman of the Committee, Hon. Olufemi Bamisile, said the assignment is of national significance, aimed at striking a balance between financial innovation and national security.
He noted that the committee’ work would focus on developing a legislative and regulatory framework that encourages innovation while protecting citizens and the integrity of the nation’s financial system.
The chairman said the committee would collaborate closely with key regulatory and security agencies such as the Central Bank of Nigeria (CBN) and the Securities and Exchange Commission (SEC).
He stressed that the committee would also work with the 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.
Bamisike said: “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.
“Across the world, financial systems are being reshaped by technology. In Nigeria, cryptocurrency and PoS operations have grown rapidly, creating new opportunities for commerce, financial inclusion, and innovation.
“But alongside these opportunities lie serious risks of cybercrime, fraud, money laundering, terrorism financing, and regulatory uncertainty.”