Nigerian regulator warns MMM participants against using bitcoin

Regulation | January 17, 2017 By:

The Nigerian Securities and Exchange Commission (SEC) has warned the public against investing in cryptocurrencies including Bitcoin.

The SEC issued a statement cautioning citizens from investing in digital tokens such as Bitcoin, Onecoin, and Swisscoin. The SEC said that the public should be aware that these investments are “risky by nature” and some of them are “fraudulent pyramid schemes.” The Nigerian authorities state in the public notice:

“The attention of the Securities and Exchange Commission has been drawn to radio advertisements and other modes of solicitations of the public to invest in cryptocurrencies such as Swisscoin, OneCoin, Bitcoin and other such virtual or digital currencies. The public is hereby advised to exercise extreme caution with regard to digital (cryptocurrencies) as a vehicle of investments.”

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.