The House of Representatives Ad-Hoc Committee on the Economic, Regulatory, and Security Implications of Cryptocurrency Adoption and Point-of-Sale Operations in Nigeria, on Monday, charged the Securities and Exchange Commission to review the ₦500 million to ₦1bn capital requirement for Virtual Assets Service Providers.

The committee, chaired by Olufemi Bamisile (APC, Ekiti), made the plea at a technical session with key stakeholders held at the National Assembly Complex, Abuja, with regulatory and security agencies.

Recall that in March 2024, the SEC, in a document titled “Rules on Digital Assets Issuance, Offering Platforms, Exchange and Custody,” made it mandatory for individuals or entities providing virtual services to register with it.

One of the requirements is “Evidence of required minimum paid-up capital of N1bn,” an amount described by the lawmakers as prohibitive.

While noting that regulation of the cryptocurrency sector is essential, they argued that the new capital requirement could discourage investors and stifle the sector.

The committee therefore urged the SEC to review the capital requirement to make it more accessible and inclusive.

During the session, the Economic and Financial Crimes Commission informed the committee 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.

In response, the committee “directed the EFCC to provide comprehensive records of all digital asset confiscations to support its ongoing legislative review and policy recommendations.”

Bamisile pledged the committee’s readiness to develop 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 expressed dismay 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.