EFCC Back CBN Against Bitcoin, Warns Against Buying Bitcoin

EFCC Back CBN Against Bitcoin, Warns Against Buying Bitcoin

- The Economic and Financial Crimes Commission (EFCC) has warned Nigerians against investing in bitcoin

- The anti-graft agency said bitcoin is prone to fraud and highly risky as it is unregulated within the country

- According to the EFCC, many Nigerians have continued to fall victim of ponzi scheme due to quick gains promised

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The Economic and Financial Crimes Commission (EFCC) has placed a red flag on bitcoin, stating that the most popular cryptocurrency is a risky investment for individuals or businesses that disburse their money into it.

The anti-graft agency echoed the sentiment of the Central Bank of Nigeria (CBN) stating that fraudulent activities are linked with bitcoin transactions and innocent investors could fall prey.

In its latest remark, the spokesperson for the EFCC, Wilson Uwujaren, stated that ponzi scheme had made many Nigerians lose their hard earned money due to quick gains.

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Uwujaren acknowledged that risk-taking is part of business, but cryptocurrency is prone to fraud as it is unregulated. He stated that Nigerians need to be cautious of investments that promise high returns with little risk.

Investment regulator, Securities and Exchange Commission haven't concluded plans on a regulatory framework for cryptocurrency investment, and it was discussing with stakeholders when the CBN banned transactions on the crypto market.

The apex bank directed banks not to conduct business with cryptocurrency exchanges and close accounts linked to any digital asset. This directive was given in February and was trailed by criticism from Nigerians.

EFCC Back CBN Against Bitcoin, Warns Against Buying Bitcoin
EFCC logo and Bitcoin per one dollar illustration. Photo: @officialEFCC (R) and Martin BUREAU/AFP (L)
Source: UGC

While the ban cut the link between Nigerians and cryptocurrency exchanges, it didn't totally affect crypto investment, as individuals are conducting peer-to-peer transactions pending the lifting of the ban.

With Nigerians still involved in what many have considered as a future digital currency to be used by countries, the anti-graft agency said:

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“Though risk-taking is considered by some as the oxygen that drives investment decisions, the commission wishes to warn the public against taking an unmitigated risk in desperation to earn a windfall,” he said.
“Investment in Bitcoin, for instance, is a high-risk activity as the terrain is largely unregulated, and prone to fraud.”

The spokesperson added:

“Any investment that promises returns that look too good to be true should be considered a red flag.
“Nigerians are by this notice, warned to be wary of fraudulent schemes and are hereby enjoined to resist the temptation of quick gain that could end in misery.”

Meanwhile, Legit.ng had previously reported that American footballer, Sean Culkin, has decided to earn his $920,000 base salary in bitcoin, making him the first sportsman to receive salaries in bitcoin.

Culkin said bitcoin has become generational wealth rather than a quick gain as the central bank in Nigeria believes. He said it is the future's finance that he wants to be a part of fully.

According to the footballer, he doesn't want to have to think about when the right time to invest is, he always wants to be involved. His salary will be paid in fiat (dollars) but Strike by Zap will convert it to bitcoin.

Source: Legit.ng

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