House of Reps Initiates Probe into Cryptocurrency’s National Security Threat
The House of Representatives has taken a significant step towards examining the potential national security risks posed by cryptocurrency transactions, blockchain technology, and other digital asset dealings. The decision to launch an investigation stems from growing global concerns regarding the security implications associated with cryptocurrency exchanges, which are perceived as facilitating money laundering by criminal elements and terrorists for illicit activities.
Rep. Isiaka Ibrahim (APC-Ogun) brought the motion to the floor during a plenary session in Abuja, highlighting the need to address the security challenges posed by cryptocurrency transactions. The motion was unanimously adopted by the house, signaling a collective commitment to delve deeper into this issue.
The investigation is set to scrutinize various aspects of the cryptocurrency ecosystem, including international money transfer operators, payment gateways, cloud computing infrastructure, and online peer-to-peer marketplaces operating in Nigeria. By identifying potential threats to national security and regulatory gaps, lawmakers aim to bolster the country’s defenses against illicit financial activities facilitated by cryptocurrencies.
Specifically, the probe will examine the status of the E-Naira on the global cryptocurrency platform, scrutinizing the processes involved, costs incurred, and compliance with statutory regulations. Additionally, the investigation will assess the legal status and compliance of cryptocurrency operators with existing statutes, shedding light on any complicity in infractions such as money laundering, illicit transactions, and currency speculation.
To ensure thorough oversight, the House plans to engage relevant stakeholders and collaborate with the office of the National Security Adviser and other pertinent agencies in tracking and recovering illicit funds or assets associated with cryptocurrency transactions. Upholding principles of equity, probity, transparency, and the rule of law, the government aims to adopt international best practices in its approach to regulating cryptocurrency exchanges and related entities.
The matter has been referred to the Committee on National Security and Intelligence for further deliberations, underscoring the seriousness with which the House regards the issue of cryptocurrency’s impact on national security.
