House of Reps Moves to Regulate Crypto and POS Activities

The Nigerian House of Representatives has established an Ad-hoc Committee to examine the regulations and security challenges surrounding the adoption of cryptocurrency and Point-of-Sale (POS) operations.

Speaker Tajudeen Abbas announced the committee’s formation during a ceremony on Monday, citing rising concerns over fraud, cybercrime, and consumer exploitation in Nigeria’s digital finance sector.

The move follows a November 2024 resolution where the House summoned the Central Bank of Nigeria Governor, Olayemi Cardoso, and CEOs of money deposit banks to address issues related to the lack of documentation of POS users nationwide.

This action was prompted by a motion from the member representing Ehime/Mbano/Uboma/Obowo Federal Constituency in Imo State, highlighting increasing cases of fraudulent activities linked to undocumented POS transactions.

The House recognizes that undocumented POS usage facilitates identity theft, money laundering, and unauthorized transactions, creating significant vulnerabilities within the financial system.

By enforcing proper user identification and documentation, the incidence of fraud can be reduced, thereby strengthening the security of financial transactions across Nigeria.

Speaker Abbas emphasized the urgent need for a regulatory framework to address the gaps in the operations of Virtual Asset Service Providers (VASPs), including cryptocurrency vendors.

“Due to the absence of clear rules and the volatile nature of these technologies, the House finds it essential to establish consumer protection measures and regulatory guidelines for virtual assets and cryptocurrencies,” he said.

The committee will conduct public hearings to gather input from stakeholders, which will inform the development of laws guiding the adoption and regulation of cryptocurrency and POS services in Nigeria’s economy.