Reps Move to Regulate Cryptocurrency, POS Operations Amid Rising Cyber Threats
The House of Representatives has initiated a major step toward regulating cryptocurrency and Point-of-Sale (POS) operations across Nigeria. This follows increasing concerns about the economic, regulatory, and security risks associated with digital financial transactions in the country.
On Monday, Speaker of the House, Rt. Hon. Abbas Tajudeen, inaugurated an ad hoc committee in Abuja to examine the implications of cryptocurrency and POS activities on Nigeria’s economy and security. The committee is expected to come up with recommendations that will guide the creation of laws to regulate the rapidly expanding digital finance sector.
Speaking at the inauguration, Abbas said the move became necessary following the surge in cases of financial fraud, cybercrime, money laundering, and terrorism financing traced to cryptocurrency and unregulated POS operations. According to him, while the Nigerian economy has continued to show resilience recovering from recessions and achieving growth in the non-oil sectors the vulnerabilities in the digital finance space must not be ignored.
There are real concerns about the susceptibility of cryptocurrency to terrorism financing and money laundering, considering its opaque nature, dubious regulatory framework, and lack of accountability, the Speaker said.
He added that the absence of clear rules, coupled with the volatility and complexity of the technology, makes it imperative for the National Assembly to establish appropriate regulations and consumer protection mechanisms. Abbas explained that the committee’s work would not only focus on controlling the risks but also on supporting innovation in the digital finance industry.
It is because of this absence of clear rules, coupled with the volatility and complexity of the technology, that the House found it imperative to establish regulations and consumer protection measures that will guide the activities of Virtual Assets Service Providers, including cryptocurrencies and crypto assets, he stated.
Abbas emphasized that the House is not opposed to digital innovation but is determined to protect Nigerians and the economy from exploitation by criminal elements who take advantage of regulatory loopholes. He reaffirmed the commitment of the 10th House of Representatives to support President Bola Tinubu’s ongoing economic reforms while ensuring the safety and integrity of the financial system.
The Speaker announced that the ad hoc committee would conduct public hearings and consult widely with relevant stakeholders to develop a comprehensive legislative framework. The hearings are expected to involve regulators, financial institutions, fintech operators, and security agencies, among others.
In his remarks, the Chairman of the Committee, Hon. Olufemi Bamisile (APC–Ekiti), said cryptocurrency and POS systems have significantly enhanced business operations, financial inclusion, and innovation in Nigeria. However, he cautioned that these technologies also come with risks such as cybercrime, fraud, money laundering, and terrorism financing.
Bamisile explained that the committee’s mandate is to craft a balanced framework that encourages innovation while safeguarding citizens and the financial system. We cannot ignore the realities of cyber threats and financial crimes that accompany these technologies. Our goal is to ensure that Nigerians can continue to enjoy the benefits of digital finance within a safe and well-regulated environment, he said.
He disclosed that the committee would work closely with key institutions, including the Central Bank of Nigeria (CBN), Securities and Exchange Commission (SEC), Nigeria Deposit Insurance Corporation (NDIC), Nigerian Financial Intelligence Unit (NFIU), Economic and Financial Crimes Commission (EFCC), Independent Corrupt Practices and Other Related Offences Commission (ICPC), and the Nigeria Police Force.
According to him, the committee will adopt a consultative and evidence-based approach through engagement with regulators, fintech operators, civil society groups, and the security community. This approach, he said, will ensure that the committee’s recommendations reflect diverse perspectives and lead to practical, implementable solutions.
Nigeria currently ranks among the top countries in global cryptocurrency adoption. Millions of Nigerians use digital assets and POS services for business transactions, remittances, and daily trade. However, the unregulated nature of the sector has exposed many to financial scams, fraud, and loss of funds.
The Central Bank of Nigeria had previously restricted financial institutions from dealing in cryptocurrency transactions, citing the risks they pose to monetary stability and security. Despite the ban, cryptocurrency trading continues to thrive through peer-to-peer channels, underscoring the need for a well-defined regulatory system that balances control with innovation.
Analysts believe that the House’s intervention could bring the much-needed clarity and confidence that the digital finance industry requires. A structured regulatory framework, they say, would help strengthen consumer trust, encourage responsible investment, and align Nigeria with global standards in digital finance governance.
The ongoing legislative process is also expected to provide a safety net for citizens who have fallen victim to fraud and unregulated POS operators. Many small businesses and individuals depend on POS transactions daily, making proper oversight crucial to ensuring financial security and transparency.
As the ad hoc committee begins its consultations and public hearings, expectations are high that the outcome will produce a robust and forward-looking policy. If successfully implemented, the proposed framework could redefine how cryptocurrency and POS operations are conducted in Nigeria ensuring that the sector contributes meaningfully to economic growth while reducing exposure to financial crimes.
The initiative marks a critical step in the nation’s journey toward a safer, more transparent, and innovation-driven digital economy. With technology reshaping global financial systems, the House of Representatives’ proactive move could position Nigeria as a leader in responsible digital finance regulation.