In what can be said to be the country’s latest policy attack on fintech startups, the SEC has now asked trading and investment platforms to stop offering foreign stocks to Nigerians.
It should be noted that Robinhood-style aps like Chaka, Risevest and such other investment platforms have been offering Nigerians access to both local and international stocks which they can invest their money in. The latest circular from the SEC has deemed such activities illegal and any fintech that does not stay off offering such services might soon face the long arm of the law.
This is not the first time that SEC Nigeria is making such a move. Back in December of last year, the body accused Chaka, an investment platform of this sort, of advertising and selling stocks illegally in the country. The fintech came out to deny the allegations via its CEO and ever since, we have not heard anything else of the matter. Till today, anyway.
The users of these apps have been in a state of panic as they do not know what would happen to their funds which are already on those platforms. However, official emails have started going out to users to assure them that their funds are stull safe and secure as they work with the SEC to regulate the situation.