The Speaker of the House of Representatives, Rep. Tajudeen Abbas, has inaugurated an ad hoc committee tasked with reviewing the economic, regulatory, and security implications of the adoption of cryptocurrency and Point-of-Sale (PoS) operations in Nigeria.
The inauguration took place on Monday in Abuja, with the Speaker stating that the committee was necessary due to mounting concerns over fraud, cybercrime, and consumer exploitation within the digital finance sector.
Rationale for Regulation
Speaker Tajudeen Abbas acknowledged that the Nigerian economy is resilient and provides a robust environment for the cryptocurrency trade to thrive. However, he stressed the severe vulnerability inherent in unregulated cryptocurrency operations:
- Security Risks: He pointed to the susceptibility of crypto to terrorism financing and money laundering, citing its “opaque nature, dubious regulatory framework, unclear governance structure and lack of accountability.”
- Legislative Goal: The committee’s main job is to hold public hearings and collate relevant information from stakeholders to guide the House in developing a comprehensive regulatory framework for Virtual Assets Service Providers, including cryptocurrencies and crypto assets.
Committee’s Focus
The Chairman of the ad hoc committee, Rep. Olufemi Bamisile (APC-Ekiti), stated that the assignment is of national significance, aiming to strike a balance between financial innovation and national security.
The committee will work to develop a legislative and regulatory framework that:
- Encourages innovation.
- Protects citizens.
- Safeguards the integrity of the nation’s financial system.
To achieve this, the committee pledged to collaborate closely with key regulatory bodies, including the Central Bank of Nigeria (CBN), the Securities and Exchange Commission (SEC), the Economic and Financial Crimes Commission (EFCC), and the Nigerian Financial Intelligence Unit (NFIU).
