Nigeria’s cryptocurrency industry has applauded a new proposal to severely clamp down on Ponzi scheme operators and other illicit activities in the country.

The Nigerian Crypto Community APPROVED the bill proposed by the Nigerian Securities and Exchange Commission titled Investment and Securities Bill (ISB) 2024.

The new bill proposed by the Nigerian SEC under the leadership of Mr. Emomotimi Agama proposes a 10-year prison sentence for convicted Ponzi scheme operators and about $12,000 (20 million) in fines.

The SEC of Nigeria had previously introduced 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 welcomed this bill, saying the bill will help mitigate the menace of bad actors using the term “Crypto” to scam the general public.

They complained that the current crypto space in Nigeria is dominated by scammers and bad actors and the current bill will go a long way to serve as a deterrent.

In addition to the above advantages, the passage of the bill will also influence investor confidence, boost transparency and modernize Nigeria’s financial market.

Despite parts of the bill being flagged by the CBN and the Ministry of Finance, Senator Osita Izunaso, the chairman of the Senate Committee on Capital Markets, welcomed the bill, saying it could enhance the competitiveness of Nigeria’s capital if passed.

Several players in the Nigerian crypto industry have reacted to the bill, citing its importance and timing.

Nathaniel Luiz, a long-time crypto advocate and CEO of Flincap, praised the proposal saying it would go a long way to ridding the industry of bad actors.

“it’s a way to remove bad actors from the industry so we can have a vibrant financial and investment ecosystem” Luiz stated.

Web 3 analyst and crypto lawyer Rume Ophi opined that the bill will serve as a deterrent and make criminals think twice before engaging in Ponzi schemes and crypto investment scams. He also believes that the bill can hold accountable users who have defrauded citizens in the past.

Ultimately, Rume believes 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 struggles with a bad reputation of being a haven for scammers. The sector is full of various bad actors posing as influencers and investment gurus who are only after defrauding citizens.
• Earlier this year, a number of Nigerian celebrities launched shitcoins that attracted the Nigerian population to sink a lot of funds invested into the projects. Such acts would be punished by the proposed new bill.

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