Home NEWSBusiness Beware of Bitcoin, Swisscoin, Others – SEC Warns Nigerians

Beware of Bitcoin, Swisscoin, Others – SEC Warns Nigerians

by Happynaija

Nigerians investing their money in crypto currencies such as

Bitcoins, Swisscoins and others have been given a serious warning. 

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.

The scheme in December last year, went under,

leaving many Nigerians in pains following huge financial losses.

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