The Speaker of the House of Representatives, Abbas Tajudeen, has inaugurated an advert hoc committee tasked with reviewing the {economic}, regulatory, and safety implications of cryptocurrency adoption and Level-of-Sale (POS) operations in Nigeria.
Talking on the inauguration ceremony on Monday in Abuja, Tajudeen stated the committee was shaped in response to rising issues over fraud, cybercrime, and client exploitation within the digital finance area.
“The Nigerian financial system has proven outstanding resilience through the years, bouncing again from recessions and recording spectacular progress in non-oil sectors,” Tajudeen famous. “It’s secure to conclude that the cryptocurrency commerce will thrive in such a sturdy {economic} atmosphere.”
Nonetheless, the Speaker cautioned towards overlooking the dangers related to digital currencies.
“There are actual issues about cryptocurrency’s susceptibility to terrorism financing and cash laundering, given its opaque nature, doubtful regulatory framework, unclear governance construction, and lack of accountability,” he stated.
Tajudeen emphasised the necessity for clear guidelines and client safety measures to control Digital Asset Service Suppliers (VASPs), together with cryptocurrencies and crypto property.
“This Advert-Hoc Committee is totally vital,” he stated. “Its principal job is to undertake public hearings to collate related data from stakeholders that can information the Home in creating laws for a regulatory framework for the adoption of the forex in our financial system. Its work may also information the Home in its oversight features as they concern the usage of digital forex in Nigeria.”
He reaffirmed the dedication of the tenth Home to safeguarding the nation and its residents from any damaging developments that would undermine the {economic} reforms being championed by President Bola Tinubu’s administration.
Tajudeen urged committee members to method their duties with patriotism and integrity, stating, “Let the perfect intentions for the great of the nation proceed to information the work as at all times.”
In his remarks, the committee’s chairman, Rep. Olufemi Bamisile (APC-Ekiti), described the task as one in every of nationwide significance.
“We’ve been entrusted with a job of nationwide significance: to overview the {economic}, regulatory, and safety implications of cryptocurrency adoption and Level-of-Sale operations in Nigeria,” Bamisile stated.
He acknowledged the fast progress of digital {financial} techniques globally and the alternatives they current for commerce, {financial} inclusion, and innovation in Nigeria.
Nonetheless, he warned of the accompanying dangers, together with cybercrime, fraud, cash laundering, terrorism financing, and regulatory uncertainty.
“Our focus will likely be on creating a legislative and regulatory framework that encourages innovation whereas defending residents and the integrity of the nation’s {financial} system,” he added.
Bamisile stated the committee will work carefully with key regulatory and safety businesses, together with the Central Bank of Nigeria (CBN), Securities and Trade Fee (SEC), Nigeria Deposit Insurance coverage Company (NDIC), Nigerian {Financial} Intelligence Unit (NFIU), {Economic} and {Financial} Crimes Fee (EFCC), Unbiased Corrupt Practices and Different Associated Offences Fee (ICPC), and the Nigeria Police Drive.
He assured that the committee will undertake a consultative and evidence-based method, participating stakeholders comparable to regulators, banks, fintech operators, civil society {groups}, and the safety neighborhood throughout public hearings to assemble numerous views.
In response to the rising affect of digital property, Cardoso stated the CBN is working carefully with the Securities and Trade Fee and different regulatory our bodies to develop a sustainable framework.
