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After cryptocurrency ban, Nigerian govt moves against fintech firms trading foreign stocks

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Months after the Central Bank of Nigeria (CBN) banned cryptocurrency trading in the country, the Securities and Exchange Commission (SEC) has also called on the Nigerians to desist from patronizing Fintech platforms who facilitate trading on foreign stocks.

According to a statement on Thursday evening, SEC described the platforms as illegal, and warned capital market operators to stop giving support to the online investment trading platforms.

These trading platforms include Chaka, Trove, Bamboo, and Risevest among others.

The statement reads, “The attention of the Securities and Exchange Commission (the Commission) has been drawn to the existence of several providers of online investment and trading platforms which purportedly facilitate direct access of the investing public in the Federal Republic of Nigeria to securities of foreign Companies listed on Securities Exchanges registered in other jurisdictions.”

“These platforms also claim to be operating in partnership with Capital Market operators (CMOs) registered with the Commission.”

“The Commission categorically states that by the provisions of Sections 67-70 of the Investments and Securities Act (ISA), 2007 and Rules 414 & 415 of the SEC Rules and Regulations, only foreign securities listed on any Exchange registered in Nigeria may be issued, sold or offered for sale or subscription to the Nigerian public.”

Read also: Cryptocurrency market capitalisation hits $2tn as investors embrace altcoins amid bullish bitcoin

” Accordingly, CMOs who work in concert with the referenced online platforms are hereby notified of the Commission’s position and advised to desist henceforth.”

“The Commission enjoins the investing public to seek clarification as may be required via its established channels of communication on investment products advertised through conventional or online mediums.”

The move is coming months after the Central Bank of Nigeria barred banks from allowing cryptocurrency-related transactions in the country.

In quick reaction to the statement, the CEO of Bamboo, Richmond Bassey, promised users that their assets are safe and easily accessible, and they are already in discussions with the SEC and their broker partners to ensure that the interests of their users are fully protected.

Tosin Osibodu, Co-founder and CEO, Chaka Technologies, has also assured its users that they have taken the necessary steps to register with SEC.

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