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The Nigerian Securities and Exchange Commission (SEC) has warned investors and Nigerians to refrain from engaging with Marino FX Ltd, a cryptocurrency exchange company. The capital market regulator stressed that Marino FX has been negatively parading itself as a licensed cryptocurrency exchange under the regulatory agency. 
According to a <a target="_blank" href="https://sec.gov.ng/illegal-operator-alert-marino-fx-ltd/" rel="noreferrer noopener">press release</a> on its website, the regulator claimed that the cryptocurrency exchange company has neither been registered nor given a licence to operate in the Nigerian capital market.&nbsp; 
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 <img loading="lazy" decoding="async" width="750" height="355" src="https://technext24.com/wp-content/uploads/2022/03/Why-CBNs-Ban-on-Crypto-Could-Leave-Nigeria-in-a-Financial-Stone-Age.png" alt="New SEC framework mandates Nigerian crypto companies to have physical offices in Nigeria, others" class="wp-image-138841" srcset="https://technext24.com/wp-content/uploads/2022/03/Why-CBNs-Ban-on-Crypto-Could-Leave-Nigeria-in-a-Financial-Stone-Age.png 750w, https://technext24.com/wp-content/uploads/2022/03/Why-CBNs-Ban-on-Crypto-Could-Leave-Nigeria-in-a-Financial-Stone-Age-300x142.png 300w, https://technext24.com/wp-content/uploads/2022/03/Why-CBNs-Ban-on-Crypto-Could-Leave-Nigeria-in-a-Financial-Stone-Age-380x180.png 380w, https://technext24.com/wp-content/uploads/2022/03/Why-CBNs-Ban-on-Crypto-Could-Leave-Nigeria-in-a-Financial-Stone-Age-550x260.png 550w, https://technext24.com/wp-content/uploads/2022/03/Why-CBNs-Ban-on-Crypto-Could-Leave-Nigeria-in-a-Financial-Stone-Age-600x284.png 600w" sizes="(max-width: 750px) 100vw, 750px">
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“The Securities and Exchange Commission hereby notifies the public that Marino FX Ltd which is parading itself as a SEC-licensed cryptocurrency exchange is NOT registered or licensed by the SEC to operate in any capacity in the Nigerian capital market, including cryptocurrency exchanges.&nbsp;Any claim to the public by the company of its registration or license by the Securities and Exchange Commission is false and misleading,” the statement reads. &nbsp; 
The regulatory agency also asked investors to keep off making transactions with Marino FX Ltd to avoid exposure to fraud and investment loss. “The public is hereby advised to exercise caution and refrain from engaging with Marino FX Ltd or any of its representatives. Transacting in the Nigerian capital market with unregistered and unregulated entities exposes investors to financial risks, including fraud and the potential loss of investment,” the statement reads. 
The commission thereby affirmed its commitment to safeguarding investors and ensuring the integrity of Nigeria’s capital market. 
<h4 id="sec-action-against-ponzi-schemes" class="wp-block-heading">SEC action against Ponzi Schemes</h4> 
The Securities and Exchange Commission has been on moves to combat fraud, money laundering, and market manipulation in the country’s rapidly evolving cryptocurrency sector. 
Last week, the Securities and Exchange Commission said that a penalty of not less than N20 million, or 10 years imprisonment or both for Ponzi scheme operators is being proposed under the draft Investments and Securities Bill (ISB) 2024. 
Reacting to the proposed legislation, the Director-General of the commission, Emomotimi Agama, stated that the bill includes penalties that seek illegal scheme activities. He added that it will expressly prohibit Ponzi to safeguard Nigerians from all forms of fraudulent actors.&nbsp; 
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 <img loading="lazy" decoding="async" width="626" height="489" src="https://technext24.com/wp-content/uploads/2024/05/IMG_6650.jpeg" alt="Dr. Emomotimi Agama, DG of Nigeria SEC" class="wp-image-231146" style="width: 100%;height:auto">
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 Dr. Emomotimi Agama
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Agama also pointed out that the commission had observed areas that required review in the ISB 2007. This is to remove ambiguities, strengthen existing provisions, and introduce new provisions to improve the international competitiveness of the Nigerian capital market. 
“A vital provision in the bill is the new stipulation that the Investor Protection Fund (IPF) set up by the securities exchanges would compensate investors who suffer pecuniary losses arising from the revocation or cancellation of the registration of a dealing member firm,” he said. 
<h4 id="secs-approval-in-principle-to-cryptocurrency-exchanges" class="wp-block-heading">SEC’s approval-in-principle to cryptocurrency exchanges</h4> 
Notably, the Securities and Exchange Commission under its new management has shown signs of willingness to collaborate with local crypto companies, despite the protracted clampdown on major crypto exchanges like Binance and OKX. 
Recently, the SEC chief said in a conversation with Bloomberg that the licensing of crypto companies can come sooner than expected. 
This was after the commission announced that seven crypto entities had been granted an ‘Approval-in-Principle.” These crypto companies include Quidax Technologies Company and Busha Digital Limited, according to a statement released by the commission. 
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 <img loading="lazy" decoding="async" width="750" height="355" src="https://technext24.com/wp-content/uploads/2022/03/Why-CBNs-Ban-on-Crypto-Could-Leave-Nigeria-in-a-Financial-Stone-Age3.png" alt="Nigerian crypto foreign investment reaches new low" class="wp-image-138839" srcset="https://technext24.com/wp-content/uploads/2022/03/Why-CBNs-Ban-on-Crypto-Could-Leave-Nigeria-in-a-Financial-Stone-Age3.png 750w, https://technext24.com/wp-content/uploads/2022/03/Why-CBNs-Ban-on-Crypto-Could-Leave-Nigeria-in-a-Financial-Stone-Age3-300x142.png 300w, https://technext24.com/wp-content/uploads/2022/03/Why-CBNs-Ban-on-Crypto-Could-Leave-Nigeria-in-a-Financial-Stone-Age3-380x180.png 380w, https://technext24.com/wp-content/uploads/2022/03/Why-CBNs-Ban-on-Crypto-Could-Leave-Nigeria-in-a-Financial-Stone-Age3-550x260.png 550w, https://technext24.com/wp-content/uploads/2022/03/Why-CBNs-Ban-on-Crypto-Could-Leave-Nigeria-in-a-Financial-Stone-Age3-600x284.png 600w" sizes="(max-width: 750px) 100vw, 750px">
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It also said that two Digital Assets Exchanges have been granted “Approval-in-Principle” to commence operation under the Accelerated Regulatory Incubation Program (ARIP). 
On the flip side, five firms – Trovotech Ltd, Wrapped CBDC Ltd, and Housing Exchange.NG Ltd, Dream City Capital, and Blockvault Custodian Ltd (all Digital Assets Offering Platforms bar BlockVault which is a Digital Asset Custodian) have been admitted to testing their models and technology under the regulatory RI Program. 
The commission stated that the referenced Approvals-in-Principle are a precursor to the grant of full registration by the commission and are meant to ensure that appropriate protection and transparency are in place with respect to each product or service. Adding that the outcome of the process would inform further policy development in this space.&nbsp;&nbsp; 
Read Also: <a target="_blank" href="https://technext24.com/2024/08/29/sec-grants-approval-quidax-busha-nigeria/" rel="noreferrer noopener">SEC grants approval in principle to Quidax, Busha, and 5 other Nigerian crypto exchanges</a>.

SEC warns Nigerians against “unlicensed” crypto exchange, Marino FX

Technext.ng

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