Reps To Regulate Crypto, POS Operations.

NASS.

The House of Representatives on Monday established an Ad-hoc Committee to assess the regulations and security concerns related to the use of cryptocurrency and Point-of-Sale (POS) systems in Nigeria.

During the inauguration ceremony in Abuja, Speaker Tajudeen Abbas stated that the formation of the committee was prompted by reports of fraud, cybercrime, and exploitation of consumers within the digital finance sector by operators.

It is worth recalling that in November 2024, the House resolved to summon the Central Bank of Nigeria Governor, Olayemi Cardoso, along with the Chief Executive Officers of deposit money banks, to appear and offer recommendations addressing the problems associated with the undocumented use of POS services nationwide.

The House reached this decision after deliberating and adopting a motion introduced by the representative of Ehime/Mbano/Uboma/Obowo Federal Constituency in Imo State, who maintained that instances of fraudulent activity in the financial system involving POS operators had been documented, adding that there is “A necessity to combat such illicit practices and safeguard the integrity of financial transactions within Nigeria.”

The House further noted that undocumented POS transactions present vulnerabilities that enable criminal acts such as identity theft, money laundering, and unauthorised financial dealings, stating that “By enforcing the documentation of users’ identity, the incidence of fraud will significantly reduce and the security of financial transactions in Nigeria will be enhanced.”

Speaker Abbas remarked that the establishment of a regulatory framework has become essential to resolve gaps observed in the operations of virtual asset service providers.

“It is because of the 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 that will regulate the activities of Virtual Assets Service Providers, including cryptocurrencies and crypto assets.”

“This Ad-hoc Committee is therefore necessary. Its main job is to undertake public hearings to collate relevant information from stakeholders that will guide the House in developing legislation for a regulatory framework for the adoption of the currency in our economy.”

“Its work will also guide the House in its oversight functions as they concern the use of digital currency in Nigeria,” he said.

In his address, the Chairman of the Committee, Olufemi Bamisile (APC-Ekiti), stated that the Committee has a responsibility to strike a balance between financial innovation and national security.

“We have been entrusted with a task of national significance: to review the economic, regulatory, and security implications of cryptocurrency adoption and Point-of-Sale operations in Nigeria.”

“Across the world, financial systems are being reshaped by technology. In Nigeria, cryptocurrency and POS operations have grown rapidly, creating new opportunities for commerce, financial inclusion, and innovation.”

“But alongside these opportunities lie serious risks of cybercrime, fraud, money laundering, terrorism financing, and regulatory uncertainty,” he said.

The lawmaker gave assurances that the committee’s assignment would focus on creating a legal and regulatory environment that fosters innovation while ensuring the protection of citizens and the credibility of the country’s financial structure.

He also mentioned that the committee intends to work in close collaboration with important regulatory and security agencies, including the Central Bank of Nigeria, the Securities and Exchange Commission, the Nigeria Deposit Insurance Corporation, the Nigerian Financial Intelligence Unit, the Economic and Financial Crimes Commission, the Independent Corrupt Practices and Other Related Offences Commission, and the Nigeria Police Force.

He further noted that the committee would employ a consultative and evidence-led approach, involving regulators, banks, fintech companies, civil society organisations, and security agencies in public hearings to collect a wide range of views.