The Securities and Exchange Commission (SEC) of Nigeria pronounced Binance operations in the country unregistered and illegal in a statement yesterday. This comes following the regulatory scrutiny the company faces in the United States.
The regulators made this known in a press release on, June 9, on its official website. According to the statement, “Binance Nigeria Limited is neither registered nor regulated by the Commission.”
In addition, the SEC warned that individuals investing with the company are doing so at their own risk, and also pointed out that investing in crypto-assets, and crypto-asset-related financial products are risky and investors should be careful.
The SEC warned Nigerians to use caution while transacting with unregistered and unregulated platforms like Binance Nigeria, noting that the company’s activities are against Nigerian law. This follows on the heels of Nigeria enacting a 10% tax on digital assets in its new Finance Act for 2023.
“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 reads.
Related Reading: Binance.US to Pause USD Fiat Channels from Exchange
As a result, the Commission directs that Binance Nigeria “immediately stop” any sort of solicitation of Nigerian investors. Moreover, further updates as regards regulatory actions against Binance Nigeria Limited and other similar unregistered firms will be provided.
The SEC’s statement involving Binance Nigeria Limited marks the start of regulatory efforts in Nigeria against unregistered and unregulated cryptocurrency services.
U.S. SEC sues Binance
Meanwhile, the U.S. subsidiary of the global exchange, Binance.US was recently sued by the United States SEC for offering unregistered securities and also operating an unregistered exchange.
The legal action sent shockwaves across the global crypto market and saw the total crypto market capitalization crashing below $53 billion. As cryptocurrency continues to gain popularity worldwide, global regulatory bodies strive to protect local investors from significant risks relating to its volatility.
