According to PANews, Nigeria's Securities and Exchange Commission (SEC) has proposed a draft of the Investment and Securities Act, which suggests imposing a fine of up to $12,000 (20 million Naira) or a 10-year prison sentence for convicted offenders. Some members of the cryptocurrency community believe this measure will significantly deter criminals who exploit the term 'cryptocurrency' to deceive unsuspecting investors. They also argue that eliminating these bad actors will help cleanse an industry long dominated by fraudsters.
Despite being regarded as one of the world's largest cryptocurrency markets, Nigeria's reputation as a 'scammer's paradise' has hindered its growth. The country appears to lack adequate legal frameworks to punish fraudsters in the investment sector, which is seen as a contributing factor to the rise of cryptocurrency scams and Ponzi schemes. This absence of deterrence has led some Nigerian celebrities to launch or endorse fraudulent digital assets or tokens.