The House of Representatives has created a special committee to review how cryptocurrency and Point-of-Sale (POS) businesses are run in Nigeria.
The committee will look into their security risks and how they affect the country’s financial system.
Speaker of the House, Tajudeen Abbas, explained on Monday that the decision was made because of growing cases of fraud, cybercrime, and consumer exploitation involving digital finance operators.
Earlier, in November 2024, the House had called on the Central Bank Governor, Olayemi Cardoso, and the heads of commercial banks to propose solutions to problems linked to undocumented POS users.
Lawmakers noted that many POS operators and users are not properly registered, which allows fraudulent activities like identity theft, money laundering, and unauthorized transactions to thrive.
They believe that by enforcing proper user identification, such crimes can be reduced, and the security of financial transactions will improve.
Speaker Abbas said a regulatory framework is now necessary to close the loopholes in virtual asset services and protect consumers.
“Because there are no clear rules and the technology is complex and unpredictable, the House finds it necessary to create laws that will regulate virtual asset service providers, including cryptocurrency operators,” he stated.
He added that the newly formed committee will organize public hearings to gather opinions from experts and stakeholders.
The information collected will help lawmakers design effective legislation to guide the safe use of cryptocurrencies and POS operations in Nigeria.