Beware of Binance, Luno, Coinbase, others: SEC warns against unregistered schemes
- The Securities and Exchange Commission has advised operators to do away with unregistered products
- It also urged operators to prioritize cybersecurity measures to safeguard sensitive financial data and transactions.
- The commission stated that unregistered platforms such as Binance and Luno can result in the complete loss of investments
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The Securities and Exchange Commission (SEC) has said operators must combat illegal financial institutions and unregistered products.
The Director General of the SEC, Lamido Yuguda, said unregistered platforms such as Binance, Luno, PaxFul, and Coinbase could result in a significant level of risk and the complete loss of investments for operators.
In addition, Yuguda urged market operators to give cybersecurity measures a priority in order to protect sensitive financial data and transactions.
Source: UGC
Legit.ng earlier reported that the SEC officially declared that Binance Nigeria Limited, a cryptocurrency exchange, is operating illegally in the country.
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Similarly, US regulators sued Coinbase alleging its failure to register as a securities exchange venue exposed investors to risk.
SEC warns the public to beware of unregistered companies
Speaking on the development, Yuguda said the commission has created several campaigns to safeguard investors from the operations of unregistered schemes as contained in a Nairametrics report.
He stressed the Commission's warning to the public on the conduct of unregistered platforms such as Binance, Luno, PaxFul, and Coinbase, as investing in crypto assets has a significant risk and can result in the complete loss of investments.
SEC worried about companies delisting from stock exchange
The DG expressed regret about the trend of companies opting to withdraw from the capital market.
In order to improve approval processes and make listing procedures more streamlined, effective, and financially feasible, he emphasised the importance of the issue and confirmed that the SEC actively works with the Exchanges in this regard.
Additionally, he disclosed that advocacy programmes were being implemented to address issues with issuances and encourage potential issuers to think about market-based funding choices.
Binance traders lose over N2trn as US govt sues company for web deception, Zhao replies
Crypto giant Binance is facing significant legal challenges as the United States Securities and Exchange Commission (SEC) files a lawsuit against the company and its CEO, Changpeng Zhao according to Legit.ng's earlier report.
The SEC accuses Binance of disregarding investor protection rules and mishandling customer funds, referring to the company's actions as a "web of deception."
This lawsuit is part of the US government's increased scrutiny of the cryptocurrency industry.
Source: Legit.ng
