The Nigerian Securities and Exchange Commission (SEC) declares Binance’s activities illegal in Nigeria
In a notice issued on Friday, the Nigerian SEC stated that Binance, a popular cryptocurrency exchange, is operating illegally in the country. The SEC also ordered all crypto platform providers to cease soliciting Nigerian investors. The regulatory body reiterated its warning from June 9, specifically referring to Binance Nigeria Ltd., a company that Binance claims it is not affiliated with. The SEC emphasized that Binance’s operations in Nigeria are unregistered and unregulated, making them illegal. The commission further warned the public to be cautious when investing in crypto assets offered by unregistered entities.
Key points:
- Binance’s activities in Nigeria have been declared illegal by the SEC.
- The SEC ordered all crypto platform providers to stop reaching out to Nigerian investors.
- Binance Nigeria Ltd., which Binance claims no affiliation with, was specifically mentioned in the notice.
- The SEC considers all cryptocurrencies as securities.
- The commission has been processing crypto exchange registrations on a trial basis, pending an agreement with the central bank.
Hot Take
The Nigerian SEC’s declaration of Binance’s illegal activities in the country highlights the regulatory challenges faced by the cryptocurrency industry. As governments strive to establish clear guidelines and oversight, crypto exchanges and platforms must ensure compliance with local regulations to retain the trust and confidence of investors. This incident serves as a reminder for crypto readers to remain vigilant and only engage with registered and regulated entities in the industry.
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