House of Representatives, yesterday, inaugurated an ad hoc committee to review the regulations and security implications of cryptocurrency adoption and Point-of-Sale operations in Nigeria.

Speaking at a ceremony in Abuja, the Speaker, Tajudeen Abbas, said the committee became necessary following allegations of fraud, cybercrime, and consumer exploitation in the digital finance space by the operators.

Recall that the House in November 2024 resolved to summon the Central Bank of Nigeria Governor, Olayemi Cardoso, and the Chief Executive Officers of money deposit banks to appear before it to propose solutions to the challenges posed by the lack of documentation of Point-of-Sale users across the country.

The decision of the House followed the consideration and adoption of a motion sponsored by the member representing Ehime/Mbano/Uboma/Obowo Federal Constituency, Imo State, who argued that cases of fraudulent activities within the financial system have been established against POS users.

Stressing “the necessity to combat such illicit practices and safeguard the integrity of financial transactions within Nigeria”.

The House said it was aware that undocumented POS transactions create loopholes for fraudulent activities, such as identity theft, money laundering, and unauthorised transactions, noting: “By enforcing the documentation of users’ identity, the incidence of fraud will significantly reduce and the security of financial transactions in Nigeria will be enhanced.”