Don’t Invest In Bitcoins‎, Swisscoin, Others–SEC Warns Nigerians

By Ikenga Chronicles January 13, 2017

Don’t Invest In Bitcoins‎, Swisscoin, Others–SEC Warns Nigerians

The Securities and Exchange Commission(SEC) has warned Nigerians not to invest in digital currencies such as Swisscoin, OneCoin and Bitcoin.SEC in a strong warning posted on it site warned that  use of the currencies is not recognized by it or any other regulatory agency in the country.
Such digital currencies, otherwise known as Crypto-currency, is a digital asset designed to work as a medium of exchange using cryptography to secure the transactions and to control the creation of additional units of the currency. Bitcoin became the first decentralized crypto-currency in 2009.
The Commission further stressed the risk on investing in the currency as there could be loss of money.
“Given that these instruments and the persons, companies or entities that promote the digital currencies 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.” it said.
The Nigeria Insurance Deposit Commission(NDIC) in conjunction with the Central Bank of Nigeria(CBN) had earlier set up a committee to study the trending “digital currency, bitcoin.”
According to Alhaji Umaru Ibrahim, Managing Director, NDIC, the Commission would look at the advantages and disadvantages of the currency and what it means for the payment system in Nigeria as well as safety and security of customers
“We will also look at what it means for money laundering, anti corruption, crime and measurement of money/near money instrument for the economy. But we need a lot of education to do this and I am calling on you [media]to educate yourselves about all of this so you can educate the public”
“Some of the Central Banks[in other parts of the world]have also adopted it and are seriously doing everything possible to bring in the emergence of these invisible products” he added.
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