Nigeria: Reps task SEC on review of $685,158 capital requirement for crypto operators

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…ask EFCC to provide details of all confiscated virtual, digital assets linked to criminal activities

Chairman, House of Representatives’ Ad-hoc Committee on Economic, Regulatory, and Security Implications of Cryptocurrency Adoption and Point-of-Sale (POS) Operations in Nigeria, Hon. Olufemi Bamisile, on Monday, described the N500 million to N1 billion capital requirement set by the Securities and Exchange Commission (SEC) for Virtual Assets Service Providers (VASPs) as outrageous and prohibitive.

Bamisile, who made the observation in Abuja during the technical meeting organised for key regulatory and security agencies, noted that 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.

The lawmaker, therefore, urged SEC authorities to review the capital requirement with a view to making it more accessible and inclusive.

During the session, the Economic and Financial Crimes Commission (EFCC) informed the stakeholders that all confiscated virtual and digital assets linked to criminal activities are currently in its custody.

The Commission disclosed that it maintains dedicated digital wallets across its zonal offices for the safekeeping of such assets.

To this end, Bamisile directed the Commission to provide comprehensive records of all digital asset confiscations to support its ongoing legislative review and policy recommendations.

Bamisile reaffirmed the Committee’s commitment to developing 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, including 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, to honour its invitation to the meeting.

Bamisile also urged all the agencies to take seriously the economic and security implications of the rapidly evolving digital finance sector.