Binance Exit: Reps To Investigate Cryptocurrency, Others

The House of Representatives has decided to launch an investigation into various aspects of the digital landscape, including cryptocurrency.

According to it, the investigation aims to assess the current state of cryptocurrency, blockchain, digital asset transactions, online peer-to-peer (P2P) marketplaces, and utility-sharing platforms within the country.

It added that the primary objectives of the inquiry are to identify threats to national security and to address any gaps in the existing legislative framework, statutes, and regulations that may be detrimental to the nation.

The decision comes at a crucial time, coinciding with the announcement by Binance, a major cryptocurrency exchange, that it will cease providing services related to the Nigerian naira and exit the Nigerian market.

The investigation extends beyond Binance and encompasses other entities as well.

Others include international money transfer operators, payment gateways and platforms, cloud computing infrastructure, and networks.

Furthermore, the House of Representatives has resolved to scrutinize the e-Naira, Nigeria’s digital currency, on the global cryptocurrency platform.

The examination will delve into the costs incurred, the processes involved, and the statutory compliance associated with creating this digital currency.

To achieve its goals, the House plans to engage relevant stakeholders and initiate the necessary processes for establishing essential legislation and regulations.

Also, it sought to create profiles of sector operators, considering factors such as legal status, parent companies, and compliance with existing statutes or involvement in infractions against the host country.

The infractions encompass money laundering, illicit transactions, currency speculation, and other undesirable practices.

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In a bid to enhance security and combat illicit activities, the Green Chamber also intends to oversee the involvement of the National Security Agency (NSA), other relevant agencies, cryptocurrency exchanges, and stakeholders.

Their collective efforts will focus on tracking, identifying, and recovering illicitly obtained or laundered funds and assets.

The motion, introduced by Isiaka Ibrahim (APC, Ogun), pointed out the growing global concerns surrounding the national security implications of cryptocurrency transactions.

Ibrahim explained that the concerns stem from the use of cryptocurrency exchanges by criminals and terrorists during activities such as money laundering and others.