Nigeria’s securities regulator has flagged down six online trading platforms for operating in the country without authorization. The Securities and Exchange Commission (SEC) listed the platforms in a recent statement published on its website.
According to the watchdog, the platforms are Prime Invest (https://webtrader.pinvest.cc/), FXBoxed (https://account.fxboxed.com/) and New Finance LLC and New FX Limited (https://www.newfx.us). The other three platforms are Axi24 (http://www.axi24.com/), Evolve Consulting LCC (https://capitalbiz.ltd and https://webtrader.c-base.co) and Trust Fund-Mining Global Pty Ltd. (with the website www.trustfund-mining.com).
Finance Magnates reported that Italy's Companies and Exchange Commission (CONSOB) warned against these platforms in March, noting that five of them are illegal financial intermediary websites, and one offers financial products without any prospectus.
“Members of the public are advised to adopt the greatest diligence in making investment choices,” the SEC warned in the statement. “In view of the above, the general public is hereby warned that any person dealing with the above-mentioned e-commerce websites is doing so at his/her own risk.”
Nigeria SEC Reiterates CONSOB Warning
Meanwhile, the Nigerian securities watchdog recently warned Nigerian investors against five other e-commerce websites flagged by CONSOB as unauthorized and fraudulent financial service providers.
According to the Nigeria SEC, the platforms are CMS Ltd (capmarketstrategy.io, with its page https://client.capmarketstrategy.io); Bitsterzio (https://www.bitsterzio.com); and Invest Atlas (https://investatlas.co).
The other two are: Ether-Arena Ltd (https://www.ether-arena.com); and Ether-Arena Ltd (https://veneab.co with its page: https://clientzone.vineab.com).
“The Commission also wishes to draw the attention of the Nigerian investing public that the aforementioned e-commerce websites are not registered by the SEC Nigeria and the financial services offered by these e-commerce websites are also not authorized by the SEC,” the Nigerian watchdog noted.
Across the world, other regulators are actively flagging down illegal trading platforms. Late last month, the National Securities Market Commission (CNMV), Spain’s financial regulator, issued a warning against six unregistered entities including clones of Pepperstone and FXPRIMUS.
In early April, the UK's Financial Conduct Authority warned against two forex/CFDs platforms, Saxo 24 FX and One Zero Trade. The watchdog said both platforms are targeting UK investors without being authorized to operate in the country.
Nigeria SEC Considers Permitting Asset-Backed Tokens
Meanwhile, Nigeria's SEC is considering sanctioning tokenized coin offerings backed by assets, such as equity and debt, Bloomberg reported on Monday, noting that the offerings are to be traded on licensed digital exchanges. However, crypto is not in view, the outlet reported, quoting Abdulkadir Abbas, the Head of Securities and Investment Services at the Nigerian securities watchdog.
As part of the plan, the SEC intends to make interested digital exchanges undergo a year of ‘regulatory incubation’ with the provision of limited services to determine whether to onboard the firm or halt their operation in Africa’s most populous nation.
The latest news comes months after Nigeria’s low chamber introduced a bill to legalize crypto as investment capital. Additionally, Finance Magnates reported that the SEC in May last year judged cryptocurrencies as securities and issued new rules on the issuance, offering and custody of digital assets.
Yet, Nigeria’s apex monetary authority is yet to back down on its implicit ban on cryptocurrencies. In February 2021, the Central Bank of Nigeria bank ordered commercial banks in the country to close down accounts of cryptocurrency traders in the country. To enforce the order, the authority in April last year slapped a fine of N814.3 million (nearly $2 million at the time) on four commercial lenders for allowing cryptocurrency transactions.
