Binance Operations Banned In Nigeria
The Nigerian Securities and Exchange Commission (SEC) has issued a statement emphasizing that Binance Nigeria, a subsidiary of the popular global cryptocurrency exchange Binance, is operating illegally in the country as it is not registered or regulated by the SEC.
In a statement published on its website, the SEC pointed out that Binance Nigeria has been actively promoting its web and mobile platforms to the Nigerian public, a clear violation of Nigerian law. The SEC has urged caution among Nigerians when dealing with unregistered and unregulated platforms like Binance Nigeria.
This notice from the SEC follows a lawsuit filed by the U.S. SEC against Binance.US, the U.S. subsidiary of the global exchange, for allegedly operating an illegal securities exchange. Additionally, Nigeria recently passed a Finance Act for 2023, which includes a 10% tax on digital assets.
The SEC’s statement specifically highlights the solicitation of Nigerian investors by Binance Nigeria and makes it clear that the company’s operations in Nigeria are illegal. The SEC warns Nigerian investors about the risks associated with investing in crypto-assets and urges them to avoid dealing with service providers or platforms that are not registered or regulated by the Commission.
The SEC has directed Binance Nigeria to immediately stop soliciting Nigerian investors. The Commission plans to take further regulatory actions against Binance Nigeria and similar platforms. It also intends to collaborate with other regulators in Nigeria to provide additional guidance on this matter.
This warning from the SEC serves as a reminder to Nigerian investors about the risks involved in the rapidly evolving and unpredictable crypto market. While cryptocurrencies have gained popularity worldwide, their decentralized nature and lack of regulation expose investors to significant risks.
Binance has recently increased its operations in Nigeria, with advertisements appearing on billboards, online platforms, and TV across major cities in the country. The SEC’s circular regarding Binance Nigeria is the beginning of regulatory actions against unregistered and unregulated crypto platforms in Nigeria. This action reflects a global trend among regulators to address the challenges posed by the cryptocurrency market.
The SEC is committed to providing updates on its regulatory actions and working with other regulatory bodies in Nigeria to establish comprehensive guidelines and regulations for the crypto market. The aim is to protect the interests of Nigerian investors and ensure they have access to transparent and regulated investment opportunities.
By cracking down on unregistered platforms, the SEC aims to build confidence in the crypto market and protect unsuspecting investors from fraudulent schemes. While cryptocurrencies offer potential benefits such as financial inclusion and technological innovation, regulatory oversight is necessary to protect investors and maintain market integrity.
Nigeria, like many other countries, is still in the early stages of formulating comprehensive regulations for the crypto market. Therefore, investors should stay informed about updates from the SEC and other regulatory bodies. By educating themselves and choosing reliable and regulated platforms, Nigerian investors can navigate the crypto market with greater confidence and safeguard their investments.