Nigerians investing their money in crypto currencies such as bitcoins, swisscoins and others have been given a serious warning.
Bitcoins
The Securities and Exchange Commission, on Thursday warned
Nigerians about radio advertisements and other modes of solicitations of
the public to invest in crypto currencies such as Swisscoin, OneCoin,
Bitcoin and such other virtual or digital currencies.
According to SEC, the public must exercise extreme caution with
regard to digital (crypto currencies) as a vehicle of investments.
It further warned Nigerians that none of the persons, companies or
entities promoting crypto currencies had been recognised or authorised
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, while
others may be outright fraudulent pyramid schemes,” the regulator noted.
The SEC added, “Given that these instruments and the persons,
companies or entities that promote them have neither been authorised,
nor any guidelines/regulations developed for them by any of the
regulatory authorities in Nigeria, 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.
“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 authorised by the
commission or other financial services regulatory authority as
applicable to provide such services.”
SEC had in August this year, raised the alarm over the activities
of some online fraudsters, who operated an online investment scheme
tagged ‘MMM Federal Republic of Nigeria.’
According to Punch, the fraudsters, SEC said then, carried out
their illegitimate business via Nigeria.mmm.net portal/platform, and
were promising investors a monthly investment return of 30 per cent.
It warned that the venture had no tangible business model,
describing it as a Ponzi scheme, where returns would be paid from other
people’s invested funds.
The commission, therefore, advised the general public to distance themselves from the online scheme, adding, “Please note that anyone that subscribes to this illegal activity does so at their own risk.”
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