The Securities and Exchange Commission (SEC), Nigeria, warned Nigerians against dealing with “Shalom Coin (SHLM)” digital token or its promoters due to potential fraud risks.
The SEC, in a disclaimer on Friday, stressed that SHLM is being promoted as an investment opportunity purportedly issued on the Ethereum Blockchain as an ERC-20 token.
“The attention of the Securities and Exchange Commission, Nigeria (“the Commission”) has been drawn to the activities of certain cryptocurrency promoters advertising a digital token known as ‘Shalom Coin (SHLM)’ as an investment opportunity purportedly issued on the Ethereum Blockchain as an ERC-20 token,” the statement partly reads.
Intelligence Report
- According to the Commission, preliminary findings show that “Shalom Coin (SHLM)” is being promoted across online channels and social media platforms as a “meme coin” or community token, often accompanied by speculative claims of potential investment returns.
“Additional findings also suggest that the token’s smart contract includes features enabling the issuer or creator to modify critical parameters such as trading permissions, transaction fees, and total token supply,” SEC noted.
- The Commission stressed that developments associated with the purported token make the risk of potentially fraudulent crypto-asset schemes “very high”.
- Furthermore, SEC disclosed that the promoters and/or issuers of “Shalom Coin (SHLM)” are not registered to operate in any capacity in the Nigerian Capital Market.
“Consequently, ‘Shalom Coin (SHLM)” is not approved by the Commission for issuance, trading, or offering to the investing public in Nigeria,” the Commission stated.
- Members of the investing public were strongly advised to exercise utmost caution in dealing with “Shalom Coin (SHLM)” or any similar unregistered digital asset, adding that anyone who invests in such products does so entirely at their own risk.
The Commission further reminded investors to verify the authenticity of any digital asset, its promoters, and trading platforms through the Commission’s official website[www.sec.gov.ng/cmos](https://www.sec.gov.ng/cmos) – before engaging in any form of digital asset investment.
What You Should Know
This development is part of the SEC’s role in enforcing actions against all individuals and business entities, including crypto exchanges operating in the country outside its regulations.
In 2024, the Director-General of SEC, Dr. Emomotimi Agama, emphasized that the Commission was determined to protect all investors.
This comes after the capital market regulator, in 2024, granted approval in principle to two crypto exchanges in the country, Quidax and Busha.
These two exchanges were the first platforms to come under SEC’s regulation, at the time.
Agama disclosed that the SEC had received numerous applications for crypto exchanges but clarified that the number of registered exchanges would be determined by their ability to meet the Commission’s strict regulatory standards.
He said the Commission is also taking steps to safeguard citizens from misinformation and fraudulent activities in the digital market space.
According to him, the activities of crypto exchanges must be closely monitored so they do not impede the economy.
While encouraging innovation, the SEC official said it remains committed to ensuring that the market operates within clear regulatory guidelines.
