The House of Representatives has warned that while regulation of the crypto space is necessary, such stringent capital thresholds could stifle innovation
The House of Representatives ad-hoc committee investigating the economic, regulatory, and security implications of cryptocurrency adoption and Point-of-Sale (POS) operations in Nigeria has faulted the ₦500 million to ₦1 billion capital requirement imposed by the Securities and Exchange Commission (SEC) on Virtual Assets Service Providers (VASPs).
It described it as excessive and prohibitive.
The committee, chaired by Rep. Olufemi Bamisile (APC, Ekiti), raised the concern during a technical session with key regulatory and security agencies held on Monday at the National Assembly Complex, Abuja.
Lawmakers warned that while regulation of the crypto space is necessary, such stringent capital thresholds could stifle innovation, discourage legitimate investors, and shut out emerging entrepreneurs, especially young Nigerians who are driving growth in the digital economy.
They therefore urged the SEC to review the capital requirement to make it more inclusive and supportive of innovation.
During the session, the Economic and Financial Crimes Commission (EFCC) revealed that all confiscated virtual and digital assets linked to criminal activities are currently in its custody. The anti-graft agency said it maintains dedicated digital wallets across its zonal offices for the safekeeping of such assets.
In response, the committee directed the EFCC to furnish it with comprehensive records of all confiscated digital assets to aid its ongoing legislative review and policy recommendations.
Bamisile reaffirmed the committee’s commitment to developing a balanced regulatory framework that promotes innovation while ensuring financial system integrity, transparency, youth inclusion, and national security in Nigeria’s digital finance space.
The committee, however, expressed disappointment over the failure of key institutions — including the Office of the National Security Adviser (ONSA), Central Bank of Nigeria (CBN), Nigerian Communications Commission (NCC), Federal Inland Revenue Service (FIRS), Ministry of Finance, and Ministry of Communications, Innovation and Digital Economy — to honour its invitation to the session.
Bamisile urged the agencies to take seriously the far-reaching economic and security implications of the country’s rapidly evolving digital finance ecosystem.
