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House of Representatives Urges SEC to Review and Reduce ₦1 Billion Entry Requirement for Cryptocurrency Firms

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The House of Representatives Ad-Hoc Committee on the Economic, Regulatory, and Security Implications of Cryptocurrency Adoption and Point-of-Sale Operations in Nigeria has called on the Securities and Exchange Commission (SEC) to review the current ₦500 million to ₦1 billion minimum capital requirement imposed on Virtual Assets Service Providers (VASPs).

The committee, chaired by Hon. Olufemi Bamisile (APC, Ekiti), made the appeal on Monday during a technical session with key regulatory and security stakeholders at the National Assembly Complex, Abuja.

In March 2024, the SEC issued the Rules on Digital Assets Issuance, Offering Platforms, Exchange and Custody, mandating all individuals and entities offering virtual asset services to register with the Commission. Among the listed conditions was “evidence of required minimum paid-up capital of ₦1 billion,” a benchmark lawmakers have described as restrictive and detrimental to innovation.

While acknowledging the need for robust regulation of Nigeria’s emerging cryptocurrency ecosystem, the committee argued that the existing capital threshold could deter genuine investors and stifle the growth of the digital economy. It therefore urged the SEC to reconsider the requirement and adopt a more inclusive and scalable model.

“The committee believes that regulation should not become a barrier to innovation,” Bamisile said, adding that the legislature aims to foster a balance between investor protection, market integrity, and economic opportunity.

During the session, the Economic and Financial Crimes Commission (EFCC) informed lawmakers that all digital and virtual assets seized from criminal activities are currently under 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 submit detailed records of all confiscated digital assets to aid its ongoing legislative review and policy recommendations.

Bamisile further assured that the committee would develop a framework that supports innovation while strengthening financial system integrity, enhancing transparency, and promoting youth inclusion in the digital economy.

However, the lawmakers expressed disappointment over the absence of several critical institutions, including the Office of the National Security Adviser, Central Bank of Nigeria (CBN), Nigerian Communications Commission (NCC), Federal Inland Revenue Service (FIRS), Ministry of Finance, and Ministry of Communications, Innovation and Digital Economy, who failed to honour invitations to the meeting.

 

 

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