House of Representatives Inaugurates Ad Hoc Committee to Develop Legislative Framework for Cryptocurrency and POS to Combat Fraud and Money Laundering

Nigeria’s House of Representatives has initiated a major regulatory move by inaugurating an ad hoc committee tasked with reviewing the economic, regulatory, and security implications of cryptocurrency adoption and Point-of-Sale (POS) operations across the country.

Specific Regulatory Actions Planned
The committee’s primary focus is to develop a comprehensive legislative and regulatory framework for the digital finance space.

For Cryptocurrency: The committee will conduct public hearings to gather information that will guide the House in developing legislation for a clear regulatory framework for Virtual Asset Service Providers (VASPs), including cryptocurrencies and crypto assets.

For POS Operations: The committee will review the operations and security implications of POS services alongside crypto, addressing concerns over fraud and consumer exploitation.

Underlying Motivation
The move is motivated by the need to balance financial innovation with national security and consumer protection. Speaker Abbas Tajudeen highlighted several growing concerns:

Security Risks: The “opaque nature” and unclear regulatory framework of cryptocurrencies make them susceptible to terrorism financing and money laundering.

Fraud and Cybercrime: There are growing concerns over fraud and cybercrime in the digital finance space, which the new regulations aim to curb.

Consumer Protection: The committee seeks to implement clear rules and consumer protection measures to safeguard citizens.

The House reaffirmed its commitment to safeguarding the country and supporting the economic reforms championed by the administration of President Bola Tinubu, ensuring the integrity of the nation’s financial system while still encouraging innovation and financial inclusion. The committee plans to work closely with key agencies, including the CBN, SEC, EFCC, and the Nigeria Police Force.