The Securities and Trade Fee (SEC), Nigeria, warned Nigerians towards coping with “Shalom Coin (SHLM)” digital token or its promoters because of potential fraud dangers.
The SEC, in a disclaimer on Friday, burdened that SHLM is being promoted as an funding alternative purportedly issued on the Ethereum Blockchain as an ERC-20 token.
“The eye of the Securities and Trade Fee, Nigeria (“the Fee”) has been drawn to the actions of sure cryptocurrency promoters promoting a digital token often known as ‘Shalom Coin (SHLM)’ as an funding alternative purportedly issued on the Ethereum Blockchain as an ERC-20 token,” the assertion partly reads.
“Further findings additionally counsel that the token’s good contract contains options enabling the issuer or creator to switch important parameters akin to buying and selling permissions, transaction charges, and complete token provide,” SEC famous.
“Consequently, ‘Shalom Coin (SHLM)” will not be permitted by the Fee for issuance, buying and selling, or providing to the investing public in Nigeria,” the Fee acknowledged.
The Fee additional reminded buyers to confirm the authenticity of any digital asset, its promoters, and buying and selling platforms via the Fee’s official web site[www.sec.gov.ng/cmos](https://www.sec.gov.ng/cmos) – earlier than partaking in any type of digital asset funding.
This improvement is a part of the SEC’s function in imposing actions towards all people and enterprise entities, together with crypto exchanges working within the nation outdoors its laws.
In 2024, the Director-Basic of SEC, Dr. Emomotimi Agama, emphasised that the Fee was decided to guard all buyers.
This comes after the capital market regulator, in 2024, granted approval in precept to 2 crypto exchanges within the nation, Quidax and Busha.
These two exchanges have been the primary platforms to return underneath SEC’s regulation, on the time.
Agama disclosed that the SEC had acquired quite a few functions for crypto exchanges however clarified that the variety of registered exchanges can be decided by their potential to satisfy the Fee’s strict regulatory requirements.
He mentioned the Fee can be taking steps to safeguard residents from misinformation and fraudulent actions within the digital market house.
In keeping with him, the actions of crypto exchanges should be carefully monitored so they don’t impede the financial system.
Whereas encouraging innovation, the SEC official mentioned it stays dedicated to making sure that the market operates inside clear regulatory tips.
