Nigeria’s Securities & Exchange Commission (SEC), on Thursday urged Nigerians to exercise “extreme caution” with regard to such digital (virtual or crypto currencies) such as BitCoin, SwissCoin, OneCoin as investment vehicles, over which capital market regulators and central bank across the globe have issued similar warnings.
In a statement, the commission said
The commission warned in a statement by its management that “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.
“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 statement added.
The commission further warned that any such investment opportunities as being promoted by these unauthorized entities would likely have “a high risk of loss of money, whilst others may be outright fraudulent pyramid schemes.”
The statement signed by the SEC’s management warned that the promoters of such cryptocurrencies are not authorized, just as no guidelines or regulations have been developed for them by any regulator in the country.
The commission further urged the public and consumers of financial services and products to ascertain that the entity with whom the investment or transaction is being made is authorized by it or other financial services regulatory authority as applicable to provide such services.