- The Securities and Exchange Commission (SEC) of Nigeria has declared Binance Nigeria operation illegally
- Nigerians have also been warned to exercise caution when dealing with unregistered and unregulated platforms like Binance Nigeria
- This action by the SEC reflects a broader global trend among regulators to address the challenges posed by the cryptocurrency market
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The Securities and Exchange Commission (SEC) of Nigeria has officially declared that Binance Nigeria Limited, a cryptocurrency exchange, is operating illegally in the country.
According to a statement posted on its website, SEC cautioned the Nigerian public against engaging with the platform while highlighting the risks associated with investing in crypto-assets.
SEC made it clear that Binance Nigeria Limited, which operates through its website and mobile-enabled platforms, is neither registered nor regulated by the Commission.
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The commission further stressed that the company's activities violate Nigerian law urging Nigerians to exercise caution when dealing with unregistered and unregulated platforms such as Binance Nigeria.
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The statement reads:
"The Securities and Exchange Commission has become aware of the website operated by Binance Nigeria Limited, which is encouraging the Nigerian public to engage in cryptocurrency trading on its various web and mobile platforms.
"It is important to note that Binance Nigeria Limited is not registered or regulated by the Commission, rendering its operations in Nigeria unlawful. Therefore, any individual who chooses to engage with this entity does so at their own peril.
"As the regulatory body responsible for safeguarding investors, the Commission advises Nigerians to exercise caution when investing in crypto assets, as well as financial products and services related to crypto assets, if the service provider or its platform is not registered or regulated by the Commission.
"Nigerian investors are hereby cautioned that investing in crypto assets carries significant risks and may result in the complete loss of their investments.
"This circular serves as an official directive to Binance Nigeria Limited, instructing them to immediately cease soliciting Nigerian investors through any means."
SEC reactions come a few days after Legit.ng reported that Binance.US, the U.S. subsidiary of the global exchange, was sued by the U.S. SEC, accused of operating an illegal securities exchange.
Nigeria also recently passed a 10% tax on digital assets in its new Finance Act for the year 2023.
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