Proshare - Facebook Proshare - Twitter Proshare - Google+ Proshare - Linked In Proshare - RSS Feed

SEC Warns Against Investments in Crypto-currencies and other Virtual or Digital Currencies

Proshare

Thursday, January 12, 2017 05:44PM / SEC

The attention of the Securities and Exchange Commission, (the 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.

Given that these instruments and the persons, companies or entities that promote them have neither been authorized, 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 authorized by the Commission or other financial services regulatory authority as applicable to provide such services.

Related News
1.       SEC Issues Public Alert on the Activities of An Online Investment Scheme
2.      Complaints Against AIMS Asset Management Ltd in Respect of Private Placements
3.      SEC Issues Alert over an Illegal Operator
4.      SEC Bans Mr. Taofik Lawal & Mrs. Iyabode Lawal from Operating in the Nigeria Capital Market for Life
5.      Complaints of Alhaji Abass Bolatitio O and 35 Others against Fittco Securities Limited
6.      Mrs Oge C. Ottiwu - Illegal Activities in the Capital Market

Related News