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Nigeria: Authorities Move Against Fintech Platforms Trading Foreign Stocks, After Crypto Ban Amidst Mass Unemployment And Youth Frustrations

The Nigerian government has called on Nigerians to desist from patronizing platforms trading on foreign stocks, declaring the activities of Fintech companies such as Bamboo and Trove, illegal. 

The Security and Exchange Commission, in a post titled “Proliferation of Unregistered Online Investment and Trading Platforms facilitating access to trading in Securities listed in Foreign Markets”, urged these platforms to desist from enabling Nigerians to access securities listed by foreign companies in other countries.

This is coming months after the Central Bank of Nigeria (CBN) moved to ban cryptocurrency trading in the country.

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.”

” 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 CEO of Bamboo, Richmond Bassey, and Co-founder and CEO of Chaka, Tosin Osibodu, quickly reacted to the memo by promising users that their assets are safe and easily accessible, and that they are already in discussions with the SEC and their broker partners to ensure that the interests of their users are fully protected.

NEWS/PHOTO SOURCE: Ripples Nigeria | News Agencies

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