[2017-01-14]Nigeria Warned its Citizens About Onecoin and Bitcoin This Week

[qiumingsa]

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:

"The Commission wishes to alert the public that none of the persons, companies or entities promoting cryptocurrencies has been recognized or authorized by it or by other regulatory agencies in Nigeria to receive deposits from the public or to provide any investment or other financial services in or from Nigeria."

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.

OneCoin – which has widely accused of operating a fraudulent Ponzi scheme and has been targeted by other regulatory warnings and investigations – also does business in Nigeria.

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
You can read the full article here:http://www.coindesk.com/nigeria-warned-citizens-onecoin-bitcoin-week/

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[cr1776]

With the inflation rate in Nigeria it isn't surprising those in power would be worried about something like bitcoin.

[darkangel11]

With the inflation rate in Nigeria it isn't surprising those in power would be worried about something like bitcoin.

They are afraid their poor citizens will end up spending their money on digital goods, instead of financing their master's luxurious lives with taxes. Money spent in the internet are out of the government's control, so if something happens you can't close the banks and tell the citizens to go home. Right back at you, Bitcoin 1 - Nigerian Prince 0.

[Immakillya]

Nigerian government find these coins a threat to them. Due to inflation. Fiat there is losing its value. When people there start to adapt bitcoin. I think its threat to their fiat. The fiat there may lose more of its value. Even worst when they choose to use bitcoin than fiat. They are also cant collect tax from them because bitcoin is not centralize.

[Dmitry.Vastov]

And another fud is being made today. The recent one is from China and now Nigeria. But i think it has no big effect on the price even they declare to ban this technology because only few people there are using bitcoin. Bitcoin is the chance of people there to scape devaluation of fiat there. This means no tax to be collected by the government.

[cpfreeplz]

If my government came out and said something as stupid and ignorant as this I would but as many bitcoins as I could because obviously them making a statement about it means they need you to keep your money tied up with them for one reason or another. It just seems petty and desperate tbh.

[maku]

What I found the most idiotic about this warning is they way Nigerian authorities put OneCoin (clearly some shitty scamcoin, designed to make its creator rich) in the same sentence with bitcoin.
It will give people fake insight that every cryptocurrency is the same and Bitcoin is no better that Onecoin. BTW will they issue warning against their own FIAT currency? Because it is the most unstable asset here IMO.

[BellaBitBit]

Really?  "use extreme caution".  Just another government afraid of btc and digital currencies and their citizens finding alternatives to local currencies.  Third world countries could especially benefit from a global digital currency that all citizens have access to. 

[Goms]

Really, what the Nigerian government said is not stupid, neither is it FUD just to remain significant.
Authourities warned citizens about MMM as well, it fell on deaf ears, now people are trying to get their hard-earned cash out of MMM which has suddenly closed shop and moved to Kenya(with the bid to scam more people).

[strasboug]

What is OneCoin? must be a scamcoin. There are so many scam coins out there, and should be banned. But bitcoin is all different, it has many business and service support.