The Chairman of the Senate Committee on Capital Market, Senator Osita Izunaso, has cautioned that the era of fraudulent investment schemes and market manipulation is over, as the Securities and Exchange Commission (SEC) will now properly regulate cryptocurrency trading.
Speaking at a media conference on Wednesday, Izunaso underscored that the new law assented to by President Tinubu has introduced regulatory measures aimed at strengthening Nigeria’s financial system, particularly in the cryptocurrency capital market sectors and State government funding.
He warned that promoters and operators of illegal financial schemes face severe penalties, including fines of at least N20 million and imprisonment of up to 10 years or both.
“Before now, people engaged in Ponzi schemes without consequences, but the new law is designed to protect investors’ money. If caught, apart from paying a fine, you will go to jail. Initially, we proposed a 20-year sentence, but 10 years has been approved,” he stated.
Izunaso also explained the new law now encourages sub national to access long-term funding through the capital market. He urged states to approach the SEC for infrastructure financing, noting that regulatory reforms have made the process more flexible.
“Every state can now approach the capital market for funding without unnecessary bottlenecks. This will drive infrastructural development across the country,” he stated.
Addressing concerns about digital assets and cybercrime, Izunaso assured Nigerians that the new securities law will comprehensively address issues related to cryptocurrency and other digital financial instruments.
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