The Securities and Exchange Commission (SEC) has ruled that it is against the law for Binance Nigeria Limited, a subsidiary of Binance, to conduct business within the borders of the country.
SEC said in a statement that was published on its website on Friday that the cryptocurrency platform has been actively promoting its web and mobile-enabled platforms to Nigerians.
The statement was released by SEC. The assertion states that the corporation is not subject to its regulations and is not registered with them either.
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Nigeria government to investors
“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,” the statement contained.
“As the regulator with the statutory mandate of investor protection, the Commission urges Nigerians to be wary of investing in crypto-assets and related financial products and services if the service provider/its platform is not registered or regulated by the Commission,” the SEC said in a statement, warning Nigerians to be wary of crypto-assets and related financial products and services that are not registered in the country.
Investors from Nigeria are therefore cautioned that putting their money into crypto-assets comes with a high degree of uncertainty and could lead to a complete wipeout of their capital.
“By this circular, Binance Nigeria Limited is hereby directed to immediately stop soliciting Nigerian investors in any form whatsoever.”
As a result, the organisation in charge of regulating the capital market made a commitment to continue to offer information on subsequent regulatory measures involving the activities of Binance Nigeria Limited and other platforms that are analogous to it. Additionally, they stated that they would collaborate with other regulatory organisations in Nigeria to provide additional guidance on this subject.
The United States Securities and Exchange Commission (SEC) has filed litigation against Binance, the world’s premier blockchain ecosystem, which includes the largest digital asset exchange as part of its product suite. These cases are the most recent example of a crackdown on cryptocurrency businesses in the United States.
About Binance
Binance is a digital asset trading platform that is accessible solely through the internet. It supports hundreds of the cryptocurrencies that are now the most actively traded. A cryptocurrency wallet is made available to traders on Binance so that they can store their electronic funds.
The exchange provides users with the necessary support services to enable them to earn interest or conduct business using bitcoins. It also provides programmes for miners and assists dealers in making selections regarding investments.
Binance operates globally and has its own blockchain-based token called BNB. However, due to legislation in some countries like the United States and the United Kingdom, Binance’s presence is restricted in those nations.
Changpeng Zhao, a prominent entrepreneur, investor, and software engineer, the person who initiated the creation of Binance in 2017. It was July when he first opened the exchange and in just a little over half a year.
Despite Binance growing to become one of the largest cryptocurrency exchanges in the entire globe, its operation is not approved in the most populous black nation – Nigeria.
