The Securities and Exchange Commission (SEC) has warned Nigerians against investing in digital currencies such as Bitcoin, Swisscoin and OneCoin.
SEC disclosed this in a public notice on its website on Thursday, stating that none of the individuals or companies promoting the use of the currencies is recognised by it or any other regulatory agency in Nigeria.
The commission stressed the risks and possibilities of investors losing their money to such investments being promoted by these companies, including fraudulent pyramid schemes.
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This comes in the wake of the return of Nigeria’s leading Ponzi scheme, MMM Nigeria, which had earlier placed a one-month ban on all withdrawals from December 13, 2016.
Upon resumption, the scheme introduced the use of bitcoins as part of its payment options, citing bitcoin’s steady growth in value as a rea99s steady growth in value as a reason for participants to adopt the currency.
However, SEC advised the public to exercise extreme caution with regard to digital currencies as a vehicle of investments.
“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 regulatory body noted.
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