Nigeria’s Lawmakers Move to Regulate Crypto and POS Operations

 Nigeria is taking a bold step to bring order to its fast-growing digital finance sector. The House of Representatives has set up a special committee to regulate cryptocurrency activities and Point-of-Sale (POS) operations across the country. The goal is to protect citizens, strengthen financial security, and ensure innovation in financial technology continues responsibly.

Digital finance has become part of daily life for millions of Nigerians. From online crypto trading to simple POS payments, the convenience is undeniable. Yet, the lack of proper oversight has also led to rising cases of fraud, scams, and cybercrime. Many people have lost hard-earned money to fake crypto platforms or dishonest POS agents. The new move by the House seeks to close these loopholes and restore public confidence.

Speaker Abbas Tajudeen inaugurated the committee to study the impact of these financial systems on the economy and national security. The committee’s job is to engage stakeholders, including fintech experts, financial institutions, regulators, and consumers. They will recommend practical laws that can protect users without discouraging technological advancement. The idea is to strike a balance between safety and innovation.

A key part of this initiative is the regulation of Virtual Asset Service Providers, which include cryptocurrency exchanges and digital wallet operators. These companies will need to comply with national standards, register with the appropriate authorities, and follow anti-money laundering guidelines. By doing this, the government aims to reduce the risk of financial crimes and ensure that digital assets are traded transparently.

The committee will also focus on POS operations. Over the past few years, POS machines have transformed small business transactions, especially in rural and semi-urban areas. However, the system has faced several challenges—fraudulent withdrawals, cloned cards, and unregistered agents. The House intends to introduce policies that require proper identification, registration, and tracking of POS agents. This will make it easier to trace and punish fraudulent behavior while protecting legitimate operators.

These measures will not only safeguard consumers but also create a more reliable business environment. POS agents who comply with the rules will gain more trust from customers, and honest businesses will thrive under clear regulations.

Still, challenges are expected. Implementing new rules nationwide will take time, coordination, and resources. Many small POS agents may struggle with compliance costs or technical requirements. There are also concerns about overlapping mandates among regulators like the Central Bank of Nigeria (CBN), the Securities and Exchange Commission (SEC), and the Economic and Financial Crimes Commission (EFCC). The new framework must clearly define roles to prevent confusion and ensure smooth enforcement.

Another consideration is maintaining the right balance. Too much regulation could stifle innovation, while too little could leave users vulnerable. The best approach will be one that encourages safe growth, promotes inclusion, and supports technological advancement.

If done correctly, the regulation of crypto and POS operations could transform Nigeria’s financial landscape. It could attract more foreign and local investment, reduce fraud, and boost public confidence in digital transactions. It could also expand financial inclusion, giving more Nigerians access to secure and efficient payment systems.

The committee plans to hold public hearings to gather opinions from all sectors—fintech companies, POS operators, banks, and citizens. This participatory process will ensure that the laws reflect real challenges and solutions. Transparency in how these regulations are drafted will be vital to gaining public trust.

Nigeria’s move to regulate cryptocurrency and POS operations is more than just a legal exercise—it’s a step toward a safer and more stable financial future. As the country continues to embrace digital finance, proper oversight will protect consumers and support long-term growth.

For millions of Nigerians who use POS machines or invest in crypto, these regulations could mark the beginning of a new era of trust, security, and financial empowerment.