The Speaker of the House of Representatives, Abbas Tajudeen, has inaugurated an advert hoc committee tasked with reviewing the financial, 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 fashioned in response to rising considerations over fraud, cybercrime, and shopper exploitation within the digital finance area.
“The Nigerian financial system has proven exceptional resilience through the years, bouncing again from recessions and recording spectacular progress in non-oil sectors,” Tajudeen famous. “It’s protected to conclude that the cryptocurrency commerce will thrive in such a strong financial surroundings.”
Dangers Related to Digital Currencies
Nonetheless, the Speaker cautioned towards overlooking the dangers related to digital currencies.
“There are actual considerations 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 shopper safety measures to manage Digital Asset Service Suppliers (VASPs), together with cryptocurrencies and crypto belongings.
“This Advert-Hoc Committee is completely needed,” he stated. “Its predominant job is to undertake public hearings to collate related data from stakeholders that may information the Home in creating laws for a regulatory framework for the adoption of the forex in our financial system. Its work will even information the Home in its oversight capabilities as they concern using digital forex in Nigeria.”
He reaffirmed the dedication of the tenth Home to safeguarding the nation and its residents from any destructive developments that would undermine the financial reforms being championed by President Bola Tinubu’s administration.
Tajudeen urged committee members to strategy their duties with patriotism and integrity, stating, “Let one of the best intentions for the great of the nation proceed to information the work as at all times.”
Committee to Stability Innovation and Safety
In his remarks, the committee’s chairman, Rep. Olufemi Bamisile (APC-Ekiti), described the project as one in every of nationwide significance.
“Now we have been entrusted with a job of nationwide significance: to assessment the financial, regulatory, and safety implications of cryptocurrency adoption and Level-of-Sale operations in Nigeria,” Bamisile stated.
He acknowledged the speedy progress of digital monetary methods globally and the alternatives they current for commerce, monetary inclusion, and innovation in Nigeria.
Focus of the Committee
Nonetheless, he warned of the accompanying dangers, together with cybercrime, fraud, cash laundering, terrorism financing, and regulatory uncertainty.
“Our focus might be on creating a legislative and regulatory framework that encourages innovation whereas defending residents and the integrity of the nation’s monetary system,” he added.
Bamisile stated the committee will work intently with key regulatory and safety companies, together with the Central Bank of Nigeria (CBN), Securities and Alternate Fee (SEC), Nigeria Deposit Insurance coverage Company (NDIC), Nigerian Monetary Intelligence Unit (NFIU), Financial and Monetary Crimes Fee (EFCC), Impartial Corrupt Practices and Different Associated Offences Fee (ICPC), and the Nigeria Police Power.
He assured that the committee will undertake a consultative and evidence-based strategy, partaking stakeholders reminiscent of regulators, banks, fintech operators, civil society teams, and the safety neighborhood throughout public hearings to collect various views.
What You Ought to Know
- That is coming barely three days after the Governor of the Central Bank of Nigeria (CBN), Olayemi Cardoso, known as for a practical and collaborative strategy to regulating cryptocurrency in Nigeria, acknowledging its speedy progress and the necessity for a structured framework to handle its affect on the monetary system.
- Talking on the inaugural CBN Governor’s Lecture Collection held on the Lagos Enterprise School (LBS) on Friday, Cardoso mirrored on the evolution of digital currencies and the regulatory gaps that allowed crypto buying and selling to flourish unchecked.
In response to the rising affect of digital belongings, Cardoso stated the CBN is working intently with the Securities and Alternate Fee and different regulatory our bodies to develop a sustainable framework.