Nigeria’s cryptocurrency sector welcomes a proposed bill aiming to crack down on Ponzi scheme operators and fraudulent activities within the financial space. The Investment and Securities Bill (ISB) 2024, introduced by the Nigerian Securities and Exchange Commission (SEC), outlines severe penalties, including a 10-year prison sentence and fines of ₦20 million (approximately $12,000) for offenders.
The SEC’s initiative, led by Mr. Emomotimi Agama, seeks to modernize Nigeria’s securities market and curb financial crimes. The bill, previously presented to former President Muhammadu Buhari, has garnered widespread support from stakeholders in Nigeria’s crypto community. They believe it will address the prevalence of scammers exploiting cryptocurrency to deceive the public.
Nathaniel Luiz, CEO of Flincap and a crypto advocate, views the bill as a necessary step to clean up the industry. “This is a solid move to eliminate bad actors and build a healthy financial ecosystem,” Luiz stated.
Web3 analyst and crypto enthusiast Rume Ophi echoed similar sentiments, emphasizing that the bill will deter potential fraudsters and hold past offenders accountable. He added that its implementation could help rebuild trust in cryptocurrency, transforming its image from a scam-laden space to a legitimate investment platform.
Supporters believe the bill will not only deter fraud but also boost investor confidence, promote transparency, and align Nigeria’s financial system with global standards. However, portions of the proposal have faced scrutiny from the Central Bank of Nigeria (CBN) and the Ministry of Finance. Despite this, Senator Osita Izunaso, Chair of the Senate Committee on Capital Markets, describes the bill as a potential game-changer for Nigeria’s capital market.
Nigeria, a leader in cryptocurrency adoption in Africa, struggles with a reputation as a hotspot for scammers. The industry has seen multiple cases of fraud, with some celebrities promoting dubious crypto projects that have cost investors significant losses. If passed, the new bill will impose strict penalties for such acts, signaling a major shift in Nigeria’s approach to cryptocurrency regulation.
The bill represents a turning point for Nigeria’s financial sector. By curbing fraudulent activities, it aims to create a safer and more transparent crypto environment while enhancing the country’s position as a competitive player in the global financial market.
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