By Paul Effiong, Abuja
The House of Representatives Ad-Hoc Committee on the Economic, Regulatory, and Security Implications of Cryptocurrency Adoption and Point-of-Sale,POS, Operations in Nigeria has urged the Securities and Exchange Commission SEC, to reconsider the ₦500m to ₦1b capital requirement imposed on Virtual Assets Service Providers, VASPs, saying its excessive and counterproductive.
The chairman of the Committee Hon. Olufemi Richard Bamisile made the appeal during a technical session with regulatory and security agencies yesterday at the National Assembly Complex, Abuja.
Lawmakers who spoke at the meeting argued that while regulation of the cryptocurrency sector is vital to prevent misuse, the current threshold could discourage innovation and hinder Nigeria’s competitiveness in the fast-growing digital economy.
According to the Committee, the capital barrier risks shutting out small and medium-scale innovators who play a crucial role in advancing Nigeria’s tech ecosystem. Members noted that many young entrepreneurs driving blockchain and fintech solutions might be unable to meet such requirements, thereby leaving the industry in the hands of only a few large corporations.
Bamisile further emphasized that inclusive policies are necessary to ensure that regulation supports, rather than stifles, economic innovation and development.
He also stated that the Committee’s goal is to establish a balanced framework that safeguards investors and consumers without discouraging the participation of startups and indigenous tech players.
At the session, representatives of the Economic and Financial Crimes Commission, EFCC, also briefed the Committee on the Commission’s handling of confiscated digital and virtual assets linked to criminal activities.
The anti graft body also disclosed that such assets are held in secure digital wallets managed by its zonal offices across the country.
Responsing, the Committee directed the EFCC to furnish it with a detailed inventory of all confiscated virtual assets to aid its ongoing legislative review and help formulate robust legislative policies that can protect Nigeria’s financial system from abuse.
Lawmakers equally stressed that transparency and accountability in managing seized assets are vital to public confidence and international cooperation in combating financial crimes offences in Nigeria.
The panel also reiterated the Committee’s commitment to crafting legislation that supports innovation, ensures regulatory clarity, and strengthens Nigeria’s position as a digital finance hub in Africa.
The Committee, however, expressed disappointment over the absence of several key institutions, including the Office of the National Security Adviser, ONSA,Central Bank of Nigeria, CBN, Nigerian Communications Commission, NCC, among others.
The Committee concluded by reaffirming its readiness to continue consultations with all relevant stakeholders, including regulators, private sector players, and civil society organizations, to produce actionable policy recommendations that will guide Nigeria’s cryptocurrency and digital finance landscape toward sustainable growth and security across the country.
