Reps set to probe cryptocurrency, others

The House of Representatives has made a decision to investigate the current status of Cryptocurrency, blockchain, digital asset transactions, online peer-to-peer (P2P) marketplace, utility sharing based platforms and their practices in Nigeria.

It plans to identify threats to national security and gaps in legislative framework, statutes and regulations to the detriment of the country.

The step was taken on a day that cryptocurrency exchange – Binance announced its plan to stop providing all services related to naira and exit Nigeria.

Others to be investigated by the lower chamber of the National Assembly following a motion by Isiaka Ibrahim (APC, Ogun), are: international money transfer operators, payment gateways and platforms, cloud computing, infrastructure (networks).

It also resolved to investigate the current status of the e-Naira on the global cryptocurrency platform, the cost incurred, processes undertaken and statutory compliance in creating the digital currency.

The House said it will engage relevant stakeholders to initiate necessary processes for establishing required legislation and regulations, while establishing the profile of operators in the sector such as legal status, parent company and assess their compliance with existing statutes or complicity in infractions against their host country.

Such infractions include money laundering, illicit transactions, currency speculation and bad practices.

The House also resolved to oversee the engagement of the office of the NSA, other relevant agencies, cryptocurrency exchanges and stakeholders in tracking, identifying and recovering illicit and laundered funds or assets.

Moving the motion, Isiaka spoke of growing global concerns about the national security implications of cryptocurrency transactions through cryptocurrency exchanges including consumer and investor security as these exchanges are said to aid money laundering by criminals and terrorists for their illicit activities.



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