In a recent statement, the Securities and Exchange Commission (SEC) of Nigeria has officially declared the activities of Binance in Nigeria to be illegal. This move has significant implications for Nigerians engaging with Binance Nigeria Limited, a subsidiary of the well-known global cryptocurrency exchange Binance. The SEC urges caution, emphasizing the risks associated with dealing with unregistered and unregulated platforms.
The SEC’s Position:
According to the SEC’s official statement, Binance Nigeria Limited is operating without registration or regulation from the Commission, thereby violating Nigerian law. Consequently, the SEC cautions the Nigerian public against engaging with Binance Nigeria, stressing that any individual involved does so at their own risk. As the regulatory body responsible for investor protection, the SEC advises Nigerians to exercise caution when considering investments in crypto-assets and related financial products and services. The Commission further warns that investing in crypto-assets carries significant risks and could potentially lead to a total loss of investment.
Directives to Binance Nigeria Limited:
The circular issued by the SEC directs Binance Nigeria Limited to immediately cease soliciting Nigerian investors through any means. The Commission asserts that it will continue to monitor the situation and provide updates on further regulatory actions concerning Binance Nigeria Limited and similar platforms. Additionally, the SEC plans to collaborate with other regulators in Nigeria to offer comprehensive guidance on this matter.
This recent notice by the Nigerian SEC follows a lawsuit filed by the U.S. Securities and Exchange Commission against Binance.US, the United States subsidiary of Binance. The lawsuit alleges that Binance.US has been operating an illegal securities exchange. These developments have led to increased scrutiny of Binance’s operations globally.
Nigerian investors are advised to be cautious when dealing with Binance Nigeria Limited or any other unregistered and unregulated platforms. The SEC’s declaration of Binance’s activities as illegal underscores the importance of regulatory compliance and investor protection in the cryptocurrency space. It remains to be seen how this situation will unfold, and further regulatory actions are expected to address the activities of Binance Nigeria Limited and similar platforms in Nigeria.