Nigeria Proposes New Law To Combat Ponzi Schemes With Severe Penalties

According to Odaily, the Nigerian Securities and Exchange Commission (SEC) has introduced a draft of the '2024 Investment and Securities Bill' aimed at imposing stringent penalties on individuals convicted of Ponzi scheme crimes. The proposed legislation suggests a maximum fine of $12,000 (20 million Naira) or a 10-year prison sentence for offenders. This initiative is seen by some in the cryptocurrency community as a significant step towards curbing fraudulent activities that exploit the term 'cryptocurrency' to deceive investors. By targeting these malicious actors, the bill is expected to contribute to the purification of the industry, fostering a more secure environment for legitimate investments. The move underscores Nigeria's commitment to strengthening its financial regulatory framework and protecting investors from scams that have plagued the market. The proposed penalties reflect the Nigerian government's determination to deter financial crimes and enhance the integrity of its financial markets. As the country continues to embrace digital currencies and blockchain technology, the introduction of such measures is crucial in maintaining investor confidence and ensuring the sustainable growth of the sector. The bill's emphasis on severe repercussions for Ponzi scheme operators highlights the importance of safeguarding the interests of investors and promoting transparency within the financial ecosystem.