The House of Representatives has begun move for the regulation of cryptocurrency and Point-of-Sale (POS) operations in Nigeria.
The move is evident following inauguration of an ad hoc committee to review the economic, regulatory, and security implications of digital financial transactions by Speaker Abbas Tajudeen on Monday.
At the inauguration, the Speaker said the exercise was necessitated by growing concerns over fraud, cybercrime, terrorism financing, and consumer exploitation associated with cryptocurrency and POS activities.
“There are real concerns about the susceptibility of cryptocurrency to terrorism financing and money laundering, considering its opaque nature, dubious regulatory framework, and lack of accountability,” Abbas stated.
He added that the absence of clear rules, coupled with the volatility and complexity of the technology, makes it imperative for the National Assembly to establish appropriate regulations and consumer protection mechanisms.
“It is because of this absence of clear rules, coupled with the volatility and complexity of the technology, that the House found it imperative to establish regulations and consumer protection measures that will guide the activities of Virtual Assets Service Providers, including cryptocurrencies and crypto assets,” he explained.
According to him, the ad hoc committee would hold public hearings to gather input from relevant stakeholders to help the House develop legislation for a comprehensive regulatory framework on cryptocurrency and digital financial services.
