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 recently held a crucial meeting with regulators and Virtual Assets Service Providers (VASPs), through the Stakeholders in Blockchain Technology Association of Nigeria (SiBAN).
The high-level engagement sought to gather insights for developing a balanced and forward-looking national framework for cryptocurrency and digital asset regulation in the country, even as the meeting underscores the legislature’s commitment to addressing both the security risks and the economic potential of Nigeria’s booming digital finance sector.
The Chairman of the House Ad-hoc Committee on Cryptocurrency, Hon. Olufemi Bamisile, strongly advocated for a significant downward review of the Securities and Exchange Commission’s (SEC) minimum capital requirement of up to ₦1 billion for cryptocurrency exchanges.
He explained the need for regulations to protect investors without strangling innovation, arguing that Nigeria’s threshold is far higher than global norms, such as the European Union’s MiCA framework. Bamisile specifically addressed a critical inconsistency, noting that most Nigerian crypto firms do not hold customer funds but only manage the underlying technology.
He stressed that subjecting these pure technology-focused firms to the same high capital and insurance standards as those that hold investors’ funds is unfair and a view shared by various stakeholders, including investors and consumer groups.
This entire regulatory effort, which also saw remarks from the representative of Speaker of the House of Representative, Hon. Usman Kumo on the clear need for a robust framework, was driven by concerns over consumer protection and national security, as Bamisile highlighted the significant deficiency of many Nigerian Fintechs in providing robust consumer protection, warning that current widespread scams could ultimately compromise financial stability and national security.
The Committee’s recommendations center on ensuring that regulations open doors, not close them, acknowledging that high barriers, such as the ₦1 billion capital requirement, would simply export our brightest minds as young entrepreneurs register their businesses abroad, resulting in lost jobs, skills, and tax revenue for Nigeria.
To promote local innovation and youth empowerment, the committee is championing a Nigeria-first licensing pathway using a tiered approach. Under this model, firms with smaller capital exposure would operate under mandatory mentorship and joint compliance tracking between the SEC and the Central Bank of Nigeria (CBN).
As these firms grow and their capacity is proven, they would gradually graduate to higher tiers with broader responsibilities. This strategic mode is specifically designed to keep innovation thriving within Nigeria, build trust in the system, and support the President’s vision of inclusive economic empowerment.
SiBAN, led by its President Obinna Iwuno, presented a comprehensive memorandum to the Committee, chaired by Hon. Olufemi Bamisile, commending the House for its timely intervention.
The association acknowledged the Committee’s mandate to review regulatory gaps, investigate security implications, and develop a framework that protects consumers while harnessing innovation.
In its submission, SiBAN highlighted Nigeria’s position as a global leader in digital asset adoption, driven by a young and tech-savvy population. However, it pointed out that the industry is currently hampered by a fragmented regulatory landscape, with overlapping jurisdictions among the Central Bank of Nigeria (CBN), the Securities and Exchange Commission (SEC), and other agencies, creating operational uncertainty. SiBAN stressed that a cohesive, risk-based framework is urgently needed to foster growth and address issues like fraud and money laundering.
