House Initiates Review Of Economic, Regulatory, And Security Impacts Of Cryptocurrency And PoS

The process of reviewing the economic, regulatory, and security ramifications of cryptocurrency adoption and point-of-sale (PoS) operations in Nigeria has been initiated by the House of Representatives.

In order to do this, Speaker Hon. Tajudeen Abbas established an Adhoc Committee in Abuja yesterday.

As worries about fraud, cybercrime, and consumer abuse in the digital finance sector grew, the Speaker was asked to speak at the committee’s inauguration.

He emphasized that given its opaqueness, questionable legal framework, ambiguous governance structure, and lack of accountability, there were legitimate worries about its vulnerability to money laundering and terrorism financing.

However, Abbas asserted that it is impossible to undervalue the inherent vulnerability of bitcoin activities.

“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,” he said, citing the lack of clear regulations as well as the volatility and complexity of the technology.

“This Ad-Hoc Committee is therefore necessary. Its primary responsibility is to hold public hearings in order to gather pertinent data from interested parties that will help the House draft legislation for a regulatory framework that will govern the currency’s adoption in our economy.

“The House’s oversight functions regarding the use of digital currency in Nigeria will be guided by its work as well.”

The committee’s chairman, Hon. Olufemi Bamisile, had earlier stated that the task, which aims to balance financial innovation and national security, is of national importance.

He stated that the committee’s work would be concentrated on creating a legal and regulatory structure that promotes innovation while safeguarding the integrity of the country’s financial system and its residents.

According to the chairman, the committee would work closely with important security and regulatory organizations like the Securities and Exchange Commission (SEC) and the Central Bank of Nigeria (CBN).

He emphasized that the committee would also collaborate with the Nigeria Police Force, the Nigerian Financial Intelligence Unit (NFIU), the Nigeria Deposit Insurance Corporation (NDIC), the Independent Corrupt Practices and Other Related Offenses Commission (ICPC), the Economic and Financial Crimes Commission (EFCC), and the Nigerian Deposit Insurance Corporation (NDIC).

We have been given a task of national importance, according to Bamisike: to examine the security, legal, and economic ramifications of cryptocurrency adoption and point-of-sale operations in Nigeria.

Technology is changing financial systems all over the world. PoS and cryptocurrency operations have expanded quickly in Nigeria, opening up new avenues for innovation, financial inclusion, and trade.

“However, these opportunities come with significant risks of fraud, money laundering, cybercrime, financing terrorism, and regulatory uncertainty.”