Binance has been suspended in Nigeria by SEC for illegal operations
- on Jun 10, 2023
Binance has been suspended in Nigeria by Securities and Exchange Commission (SEC) of Nigeria stating that Binance Nigeria, a subsidiary of world-largest cryptocurrency exchange – Binance, is operating illegally in the country as it is not registered or regulated by the SEC. Hence, SEC warn all Nigerian investors to desist from investing in crypto-assets with unregistered and unregulated platforms like Binance.
The regulatory body also urged Investors to be cautious when dealing with unregistered and unregulated platforms like Binance Nigeria, as dealing with these entity is at his/her own risk. However, SEC’s action against Binance Nigeria is part of a broader trend among regulators worldwide to address the challenges posed by the crypto market and protect investors.
According to press released on SEC’s website, Binance has been actively promoting its web and mobile-enabled platforms to the Nigerian public which however, violate Nigerian law because the cryptocurrency exchange is not registered and regulated by any government regulatory bodies in the country. This suspension comes after Binance US, the United States of America subsidiary of the world-largest cryptocurrency exchange, Binance was sued by the U.S. SEC, accused of operating an illegal securities exchange.
According Nigeria SEC, the crypto exchange is neither registered nor regulated by the Commission and its operations in Nigeria are therefore illegal. Any Nigerians dealing with Binance is doing so at his/her own risk. For this reason, SEC directed Binance to immediately stop soliciting Nigerian investors in any form whatsoever.
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.
By this circular, Binance Nigeria Limited is hereby directed to immediately stop soliciting Nigerian investors in any form whatsoever.
Furthermore, SEC promised Nigerians to “provide updates on further regulatory actions concerning the activities of Binance Nigeria Limited, and other similar platforms and shall work with other regulators in Nigeria to provide further guidance on this matter.”