Chairman of the Senate Committee on Capital Market, Senator Osita Izunaso has declared that the era of fraudulent investment schemes and market manipulation is over, with the Securities and Exchange Commission (SEC) now poised to properly regulate cryptocurrency trading.
At a media conference on Wednesday, Izunaso highlighted that the new law recently assented to by President Tinubu introduces crucial regulatory measures aimed at strengthening Nigeria’s financial system, especially within the cryptocurrency capital market and state government funding sectors.
He warned promoters and operators of illegal financial schemes that they now face severe penalties, including fines of at least N20 million and imprisonment of up to 10 years, or both.
“Previously, people engaged in Ponzi schemes without facing any consequences, but this new law is designed to safeguard investors’ funds. If caught, offenders will face both financial penalties and jail time. While we initially proposed a 20-year sentence, 10 years has been approved,” Izunaso stated.
The senator also explained that the new law facilitates subnational entities’ access to long-term funding through the capital market. He encouraged state governments to approach the SEC for infrastructure financing, emphasizing that recent regulatory reforms have streamlined the process, making it more flexible.
“Now, every state can approach the capital market for funding without unnecessary obstacles. This will help drive infrastructure development across the country,” he added.
On the topic of digital assets and cybercrime, Izunaso reassured Nigerians that the new securities law would effectively address issues related to cryptocurrency and other digital financial instruments.
