Promoters and operators of entities engaged in a prohibited scheme are liable to a penalty of not less than ₦20 million or imprisonment for a term of 10 years or both.
The Chairman of the Senate Committee on Capital Market, Senator Osita Izunaso, issued the warning on Wednesday.
Briefing journalists in Abuja, the lawmaker 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.
He said 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.
“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 that 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.
He also addressed concerns about digital assets and cybercrime, assuring Nigerians that the new securities law will comprehensively address issues related to cryptocurrency and other digital financial instruments.
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