Cryptocurrency Investigation Sparks Debate Over Regulatory Approach
The House of Representatives has announced plans to investigate the current state of cryptocurrency, blockchain, and digital asset transactions in Nigeria. The investigation aims to assess potential threats to national security and identify any gaps in legislative frameworks, statutes, and regulations.
The decision to investigate was made following a motion by Isiaka Ibrahim (APC, Ogun). The investigation will include an assessment of international money transfer operators, payment gateways, platforms, and cloud computing infrastructure related to these transactions.
Additionally, the House will examine the status of the E-Naira on the global cryptocurrency platform, including its costs, processes, and compliance with statutory requirements.
The House also intends to engage with stakeholders to establish necessary legislation and regulations. They will also profile operators in the sector to evaluate compliance with existing statutes and involvement in illicit activities such as money laundering and currency speculation.
Isiaka highlighted global concerns about cryptocurrency transactions facilitating money laundering by criminals and terrorists. He emphasized the importance of the government’s actions being viewed positively by the international community and investors.
The resolution also includes plans to collaborate with the Office of the National Security Adviser (NSA), relevant agencies, cryptocurrency exchanges, and stakeholders to track and recover illicit funds or assets.
Isiaka acknowledged the Central Bank of Nigeria’s concerns regarding illicit transactions and money laundering on cryptocurrency exchanges. He also recognized the potential use of cryptocurrencies as an alternative platform for determining foreign exchange rates.
He argued that while the government should address these concerns, it should also recognize the benefits of digital asset transactions. He suggested that the focus should be on enacting and enforcing appropriate statutes and regulations to supervise crypto and digital asset transactions.
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