- The Securities and Exchange Commission (SEC) of Nigeria has declared Binance Nigeria operation illegally
- Nigerians have also been warned to exercise caution when dealing with unregistered and unregulated platforms like Binance Nigeria
- This action by the SEC reflects a broader global trend among regulators to address the challenges posed by the cryptocurrency market
The Federal Government of Nigeria led my President Tinubu’s administration has slammed a ban on the operations of Binance Nigeria Limited.
Crossriverhub.ng reports that the ban was disclosed in a circular by the Securities and Exchange Commission (the Commission).
The Commission, in the circular sighted by Cross River Hub, stated that Binance Nigeria Limited is neither registered nor regulated, and its operations in Nigeria are, therefore illegal.
The circular reads: “The attention of the Securities and Exchange Commission (the Commission) has been drawn to the website operated by Binance Nigeria Limited, soliciting the Nigerian public to trade crypto assets on its various web and mobile-enabled platforms.
“Binance Nigeria Limited is neither registered nor regulated by the Commission, and its operations in Nigeria are therefore illegal. Any member of the investing public dealing with the entity is doing so at his/her own risk.
“As the regulator with the statutory mandate of investor protection, the Commission urges Nigerians to be wary of investing in crypto-assets and crypto-asset related financial products and services if the service provider/its platform is not registered or regulated by the Commission.
Nigerian investors are hereby warned that investing in crypto-assets is extremely risky and may result in total loss of their investment.
“By this circular, Binance Nigeria Limited is hereby directed to immediately stop soliciting Nigerian investors in any form whatsoever.
“The Commission shall provide updates on further regulatory actions with respect to the activities of Binance Nigeria Limited, and other similar platforms and shall work with other regulators in Nigeria to provide further guidance on this matter.”