Reps move to review economic, security impact of cryptocurrency, POS operations
The Speaker of the House of Representatives, Abbas Tajudeen, has inaugurated an ad hoc committee to examine the economic, regulatory, and security implications of cryptocurrency adoption and Point-of-Sale (POS) operations in Nigeria.
Speaking at the inauguration on Monday in Abuja, Mr Tajudeen said the initiative became necessary following rising cases of fraud, cybercrime, and consumer exploitation within the digital finance sector.
He noted that despite periodic economic challenges, Nigeria’s economy has shown remarkable resilience, particularly through growth in non-oil sectors, an environment, he said, where cryptocurrency could potentially thrive.
However, Mr Tajudeen warned that the vulnerabilities associated with cryptocurrency operations could not be ignored.
According to him, the anonymity and weak regulatory oversight that characterise digital currencies make them susceptible to money laundering and terrorism financing.
“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,” he said.
The speaker explained that the newly inaugurated ad hoc committee will conduct public hearings and gather input from stakeholders to help the House craft a comprehensive legal and regulatory framework for cryptocurrency and other virtual assets in Nigeria.
“The work of this committee will also strengthen the House’s oversight of digital financial operations, ensuring that innovation does not come at the expense of national security or consumer protection,” he added.
He reaffirmed the commitment of the 10th House to safeguarding the country and its citizens from developments that could undermine President Bola Tinubu’s ongoing economic reforms.
He urged members of the committee to demonstrate patriotism and integrity in the course of their assignment.
In his remarks, the committee chairman, Olufemi Bamisile (APC, Ekiti), described the assignment as one of national importance aimed at striking a balance between innovation and security in the financial sector.
“Across the world, financial systems are being reshaped by technology. In Nigeria, cryptocurrency and POS operations have expanded rapidly, creating opportunities for commerce, inclusion, and innovation,” Mr Bamisile said.
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“But alongside these opportunities lie serious risks, cybercrime, fraud, money laundering, terrorism financing, and regulatory uncertainty.”
He said the committee would work towards formulating a legislative and regulatory framework that promotes financial innovation while protecting citizens and the integrity of Nigeria’s financial system.
He added that the panel will collaborate 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.
The lawmaker assured that the committee would adopt a consultative and evidence-based approach by engaging regulators, banks, fintech firms, civil society organisations, and security agencies in public hearings to gather diverse perspectives and recommendations.