6th March, 2024
By Femi Ogunshola
Members of Nigeria’s House of Representatives on Tuesday resolved to investigate the implications of Cryptocurrency, blockchain technology, and other digital asset transactions on national security.
The move was the latest in a series of actions aimed at digital assets and transactions in Nigeria in the past few days.
Binance, a leading global cryptocurrency exchange platform had announced that it will no longer offer support on the Nigerian Naira after a crackdown on its operations by the Federal Government.
The Federal Government had accused Binance of allowing its platform to be used for manipulation of the value of the naira.
Members of the House of Representatives had also on Monday invited the management of Binance over alleged tax evasion and other infractions in the operations in Nigeria.
However Rep. Isiaka Ibrahim (APC-Ogun), during plenary in Abuja noted in a motion that there are growing global concerns about the national security implications of cryptocurrency transactions through cryptocurrency exchanges including consumer and investor security.
He said these exchanges enable money laundering by criminals and terrorists for their illicit activities.
Adopting the motion, the house said it would investigate international money transfer operators, payment gateways and platforms, cloud computing.
Others include: infrastructure (networks) and all online peer-to-peer (P2P) marketplace, utility sharing based platforms and their practices, in Nigeria.
The lawmakers said the investigation would identify threats to national security and gaps in legislative framework, statutes, and regulations to the detriment of the country.
The house said that 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 would also be investigated.
The house also resolved to engage all relevant stakeholders to initiate necessary processes for establishing required legislation and regulations.
The lawmakers said that the profile of operators in the sector such as legal status, parent company, and access to their compliance with existing statutes should be unraveled.
The house said that their complicity in infractions against Nigeria including money laundering, illicit transactions, currency speculation and bad practices would be looked into.
The House also resolved to superintend the engagement of the office of the National Security Adviser and other relevant agencies, cryptocurrency exchanges in tracking and recovering illicit and laundered funds or assets.
The lawmakers said they will ensure that equity, probity, transparency, the rule of law, and international best practices were observed by the government in investigating cryptocurrency exchanges and others.
The house referred the matter to the committee on National security and Intelligence to report back to the House for further deliberations.(NAN)www.nannews.ng