House of Representatives tackles crypto fraud, inaugurating a committee to review cryptocurrency and POS operations amid rising cybercrime cases

House of Representatives has inaugurated an Ad-hoc Committee to review the regulations and security implications of cryptocurrency adoption and Point-of-Sale (POS) operations in Nigeria, following rising cases of cybercrime and consumer fraud.

Also read: EFCC warns on cryptocurrency fraud as laundering fears grow

Speaking at the inauguration in Abuja, Speaker Tajudeen Abbas said the committee was formed to address the growing concerns surrounding digital finance operations, including allegations of fraud, identity theft, and money laundering.

He explained that the House found it necessary to establish clear regulatory and consumer protection measures for Virtual Assets Service Providers, including cryptocurrency operators, due to the absence of clear rules governing their activities.

“The lack of defined regulations, coupled with the complexity and volatility of the technology, has created loopholes that bad actors exploit,” Abbas stated.

“This committee’s task is to hold public hearings, engage stakeholders, and develop a comprehensive framework that ensures security, transparency, and innovation in the digital finance sector.”

The decision follows the House’s earlier resolution in November 2024 to summon Central Bank Governor Olayemi Cardoso and the Chief Executives of commercial banks over the unregulated nature of POS transactions across Nigeria.

Lawmakers had raised concerns that undocumented POS activities were enabling identity theft, money laundering, and other illicit financial practices.

Committee Chairman Olufemi Bamisile (APC–Ekiti) described the assignment as one of national importance, saying the committee would balance technological innovation with financial integrity and national security.

“Cryptocurrency and POS operations have created opportunities for inclusion and innovation,” he said.

“But they also come with serious risks—cybercrime, terrorism financing, and regulatory uncertainty. Our duty is to find a balance that protects citizens and strengthens Nigeria’s economy.”

The House of Representatives committee plans to collaborate closely with key agencies including the Central Bank of Nigeria, Securities and Exchange Commission, Nigeria Financial Intelligence Unit, Economic and Financial Crimes Commission, Independent Corrupt Practices and Other Related Offences Commission, and the Nigeria Police Force.

Also read: EFCC declares foreign national Elie Bitar wanted for cryptocurrency fraud

Bamisile assured that the committee would adopt an evidence-based and consultative approach, gathering input from regulators, fintech operators, civil society, and security experts to shape a robust legislative and regulatory framework for digital financial operations.