The House of Representatives has set up an Ad-hoc Committee to review the regulations and security implications of cryptocurrency adoption and Point-of-Sale, POS, operations in Nigeria.
The Speaker, Tajudeen Abbas, while speaking at the ceremony on Monday stated that the committee became necessary amid allegations of fraud, cybercrime, and consumer exploitation in the digital finance space by the operators.
DAILY POST recalls that the House in November 2024 resolved to summon the Central Bank of Nigeria Governor, Olayemi Cardoso, and the Chief Executive Officers of money deposit banks to appear before it to propose solutions to the challenges posed by the lack of documentation of Point of Sale Users across the country.
The resolution comes after the consideration and adoption of a motion sponsored by the member representing Ehime/Mbano/Uboma/Obowo Federal Constituency, Imo State, who argued that cases of fraudulent activities within the financial system have been established against POS users.
According to the green chamber, it was aware that undocumented POS transactions create a loophole for fraudulent activities, such as identity theft, money laundering, and unauthorised transactions.
It noted 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.
According to the Speaker, a regulatory framework has become necessary to address the loopholes identified in the works of virtual assets service vendors.
“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,” he said.
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