Yemisi Izuora
The Securities and Exchange Commission (SEC) has clearly stated that government of Nigeria has not yet given ascent to any of its institutions to recognise any persons, companies or entities that promote digital currency or authorize issuance of any guidelines/regulations for them.
The SEC therefore warned that anyone patronising them is doing so at his or her peril as there is no protection available to users or investors in these virtual currencies from financial losses if the virtual currencies fail or the companies promoting them go out of business.
It further warned investing public to exercise extreme caution with regard to Bitcoin, crypto currencie and, other online currencies as a vehicle of investments.
SEC in a circular urged investors to confirm status of any financial institutions authorized by the Commission or other financial services regulatory authority.
According to SEC, “The attention of the Securities and Exchange Commission has been drawn to radio advertisements and other modes of solicitations of the public to invest in cryptocurrencies such as Swisscoin, OneCoin, Bitcoin and such other virtual or digital currencies.
“The public is hereby advised to exercise extreme caution with regard to digital (crypto currencies) as a vehicle of investments.
“This warning is in consonance with similar warnings issued by capital market regulators and Central Banks across the world over the past few years.
“The Commission wishes to alert the public that none of the persons, companies or entities promoting cryptocurrencies has been recognized or authorized by it or by other regulatory agencies in Nigeria to receive deposits from the public or to provide any investment or other financial services in or from Nigeria.
The public should also be aware that any investment opportunities promoted by these persons, companies or entities are likely to be of a risky nature with a high risk of loss of money, whilst others may be outright fraudulent pyramid schemes.
“The public and consumers of financial services are further advised that before making any investment or entering into any financial services transaction they should ascertain that the entity with whom the investment or transaction is being made is authorized by the Commission or other financial services regulatory authority as applicable to provide such services.”