The Nigerian cryptocurrency industry has applauded a fresh proposal to clamp down heavily on operators of Ponzi schemes and other illicit activities in the country.
The Nigerian crypto community endorsed the bill proposed by the Nigerian Securities and Exchange Commission titled the Investment and Securities Bill (ISB) 2024.
The new bill proposed by the Nigerian SEC under Mr. Emomotimi Agama proposes a 10-year jail term for convicted Ponzi scheme operators and about $12,000 (20 million) in fines.
The Nigerian SEC previously presented this bill before the former president of Nigeria, Muhammadu Buhari and stated that the purpose of the bill was to make the Nigerian securities market competitive.
Stakeholders and active members of the Nigerian crypto community have hailed this bill saying that the bill will help mitigate the menace of bad actors who use the term “Crypto” to swindle the general public.
They lamented that the current crypto space in Nigeria is dominated by scammers and bad actors and the current proposed bill will go a long way to serve as a deterrent.
In addition to the above perks, the bill’s passage will also influence investor confidence, foster transparency and modernize Nigeria’s financial market.
Despite portions of the bill getting flagged by the CBN and the Finance Ministry, Senator Osita Izunaso the chairman of the Senate Committee on Capital Markets hailed the bill saying it could enhance Nigeria’s capital competitiveness if passed.
Several players in the Nigerian crypto industry reacted to the bill citing its importance and timing.
Nathaniel Luiz, a longtime crypto advocate and CEO of Flincap praised the proposal saying it will go a long way to rid the industry of Bad actors.
“it’s one way to clear out bad actors from the industry so we can have a vibrant finance and investment ecosystem” Luiz stated.
Web 3 analyst and crypto advocate Rume Ophi opined that the bill will serve as a deterrent and will make criminals think twice before embarking on Ponzi schemes and crypto investment scams. He also believes the Bill can hold accountable users who have defrauded citizens in the past.
Finally, Rume thinks that the bill will help repair the image of cryptocurrency in the country from a perceived scam to a viable investment vehicle.
What to Know
- Nigeria is the leading African country in terms of crypto adoption and battles with a bad reputation of being a scammers haven. The sector is rife with various bad actors posing as influencers and investment gurus who are only after defrauding citizens.
- Early this year, a host of Nigerian celebrities launched shitcoins that pulled on the Nigerian populace sinking lots of funds invested into the projects. Such acts would be punished by the proposed new bill.
