Review N1Bn, N500M Capital Requirements For Crypto Service Providers, Reps Urges SEC

By Alkassim Bala Tsakuwa, 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 called on the Securities and Exchange Commission (SEC) to reconsider the ₦500 million to ₦1 billion capital requirement set by the for Virtual Assets Service Providers (VASPs) describing it as too high and prohibitive.

Chairman of the Committee, Hon. Olufemi Richard Bamisile, made the call during a technical session with key regulatory and security agencies at the National Assembly on Monday.

According to him, while regulation of the cryptocurrency sector is essential, the current capital threshold could stifle innovation, discourage legitimate investors, and exclude emerging entrepreneurs, particularly young Nigerians, who hold the potential to drive economic growth and Nigeria’s digital transformation.

In its presentation, the Economic and Financial Crimes Commission (EFCC) informed the Committee that all confiscated virtual and digital assets linked to criminal activities are currently in its custody and maintains dedicated digital wallets across its zonal offices for safekeeping.

After the submission, the Committee directed the EFCC to provide comprehensive records of all confiscated digital asset to support the ongoing legislative review and policy recommendations.

Hon. Bamisile reaffirmed that, the Committee will ensure the developement of a regulatory framework that balances innovation with oversight, safeguards the financial system, and promotes transparency, youth inclusion, and national security in Nigeria’s digital economy.

The Committee however expressed displeasure over the failure of several key institutions for failing to honour its invitation to the meeting.

The agencies and institutions who failed to appear for the meeting include; the Office of the National Security Adviser, Central Bank of Nigeria, Nigerian Communications Commission, Federal Inland Revenue Service, Ministry of Finance, and Ministry of Communications, Innovation and Digital Economy.

The Committee Chairman urged these agencies to take seriously the economic and security implications of the rapidly evolving digital finance sector.