- Nigeria’s SEC has said that Binance Nigeria Limited is neither registered nor regulated and that doing business in Nigeria is illegal.
- The order against Binance Nigeria Limited comes days after the US SEC sued Binance and its founder CZ.
- Nigeria’s SEC previously said it considers all crypto assets to be securities by default.
Binance’s Nigerian branch has been ordered to cease all operations immediately, according to a circular from the Nigerian Securities and Exchange Commission (SEC) on Friday.
The circular states that Binance Nigeria Limited’s business in Nigeria is illegal as it is not registered with and subject to regulation by the Commission.of Round The SEC said:
“Binance Nigeria Limited is neither registered nor regulated by the Commission and is therefore unlawful to do business in Nigeria. Any member of the public investor who trades with such entities does so at their own risk. will do.
As a regulator with a legal obligation to protect investors, the Commission advises Nigerians not to access crypto-assets and crypto-related financial products and services if service providers or their platforms are not registered or regulated by the Commission. We urge you to be cautious about investing in . Nigerian investors hereby warn that investing in crypto assets is extremely risky and may result in a complete loss of your investment.
This notice instructs Binance Nigeria Limited to immediately cease any form of solicitation of Nigerian investors. “
Binance Under Siege
Binance Nigeria becomes the second branch of Binance to be accused of operating unauthorized activities. The U.S. Securities and Exchange Commission (SEC) on Monday sued U.S. affiliate Binance and its founder, Zhao Changpeng, for violating the country’s securities laws.
The US SEC went even further, demanding an asset freeze on Binance.US. We are now exploring other ways to provide court sermons to Zhao Changpeng.
Nigeria’s SEC Position on Cryptocurrencies
This is the first action taken by Nigeria’s SEC against a cryptocurrency exchange platform, which has previously said that by default it considers all crypto assets to be securities.
Bloomberg reported in May that Nigeria’s SEC is processing registration applications from cryptocurrency companies on a trial basis, but will not officially begin the process until an agreement is reached with the country’s central bank.
It is currently illegal for Nigerian banks to provide services to cryptocurrency platforms.