Local advertisements for OneCoin and other digital currency investments have drawn the ire of Nigeria’s top securities regulatory.
In a statement published yesterday by the Nigerian Securities and Exchange Commission (SEC), the regulator warned that potential investors should "exercise extreme caution" in light of radio advertisements and other sales pitches made for OneCoin, bitcoin and types of digital currencies.
The agency said in a statement:
Nigeria's SEC went on to state that in some cases, those promoting the aforementioned advertisement may be conducting wholly fraudulent enterprises.
"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, whilst others may be outright fraudulent pyramid schemes," the statement read.
The timing is perhaps unsurprising, given recent developments.
Earlier this month, the controversial Ponzi scheme system MMM announced that it would reopen its doors in Nigeria, telling prospective users that it would introduce bitcoin as a form of payment, according to a report from Quartz.
Nigerian authorities have previously called for improved regulation of digital currency in the country.
In mid-2015, Okwu Nnanna of the Central Bank of Nigeria advocated for the creation of new rules to prevent potential money laundering arising from use of the tech.
Nigeria image via Shutterstock
The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.