CRYPTOCURRENC: Chairman, Gombe state fiscal responsibility commission warns residents against investing money
By Muktar Sani Saulawa
The Chairman, Gombe State Fiscal Responsibility Commission Mallam Abubakar Inuwa Tata has warned residents not to part with their hard-earned money with a promise to make heaven on earth through investment in cryptocurrency.
Mallam Abubakar Inuwa Tata made this remark when visited in the Revenue House by a legal personality who came to confirm the legality of the business as many residents were lured into parting with N1,000 – N1500 to obtain the form and get an electronic purse specifically made for transaction in the virtual currency.
While examining the card, Mallam Inuwa observed that all the required and authentic features of electronic purse were missing on the card and advised residents to be wary of fraudulent attempt by registered and incorporated businesses/foundation whose principal object is different from what they are pursuing. His words:
“We have to be vigilant at this period of economic challenge. Many people are devising ways to short-change our people due to high level of illiteracy. Most of these people came from outside the State with a promise of heaven on earth. But the reality of the matter is that most of these people and organizations came to defraud our people and push them into abject poverty.”
Mallam Inuwa cited CBN Circular of 2017 and the Press Release of February 2018 on the illegality of the use of cryptocurrency in Nigeria. The Press Release of February 2018 read thus –
Further to the circular issued by the Central Bank of Nigeria (CBN) on January 2, 2017, to Banks and other financial institutions on virtual currency operations in Nigeria, the Bank wishes to reiterate that cryptocurrencies such as Bitcoin, Ripples, Monero, Litecoin, Dogecoin, Onecoin, etc and Exchanges such as NairaEx are not licensed or regulated by the CBN.
For the avoidance of doubt, dealers and investors in any kind of cryptocurrency in Nigeria are not protected by law. Virtual currencies are traded in exchange platforms that are unregulated, all over the world. Consumers may therefore lose their money without any legal redress in the event these exchangers collapse or close business.
Members of the public are hereby warned that virtual currencies are not legal tender in Nigeria. Accordingly, we wish to caution all and sundry on the risks inherent in such activities, the release added.
