Binance operations illegal in Nigeria — SEC

The Securities and Exchange Commission (SEC) of Nigeria has issued a firm statement, explicitly stating that Binance Nigeria is not registered or regulated by the SEC.

This declaration deems the operations of the popular global cryptocurrency exchange, Binance, within Nigeria as illegal.

In an official statement published on its website, the SEC highlighted that Binance Nigeria Limited, a subsidiary of Binance, has been actively promoting its web and mobile-enabled platforms to the Nigerian public.

However, the regulatory body firmly asserted that such activities are in direct violation of Nigerian law.

The SEC has strongly advised Nigerians to exercise caution and refrain from engaging with unregistered and unregulated platforms, specifically mentioning Binance Nigeria as one such platform to avoid.

This notice from the SEC follows recent developments where Binance.US, the United States subsidiary of the global exchange, faced a lawsuit filed by the U.S. SEC. The lawsuit accused Binance US of operating an illegal securities exchange, adding further scrutiny to the global exchange’s operations.

Furthermore, this announcement coincides with Nigeria’s implementation of a new Finance Act for the year 2023, which includes a 10% tax on digital assets.

As the regulatory landscape evolves and strengthens in Nigeria, individuals and businesses are urged to adhere to the legal framework and exercise caution when engaging with digital asset platforms.

What SEC Said

“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.“

“As the regulator with the statutory mandate of investor protection, the Commission urges Nigerians to be wary of investing in crypto-assets, and crypto-asset-related financial products and services if the service provider/its platform is not registered or regulated by the Commission”.

“Nigerian investors are hereby warned that investing in crypto-assets is extremely risky and may result in total loss of their investment.”

“By this circular, Binance Nigeria Limited is hereby directed to immediately stop soliciting Nigerian investors in any form whatsoever.”

“The Commission shall 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.”

The SEC’s unequivocal stance on Binance Nigeria serves as a reminder of the importance of operating within the boundaries of Nigerian regulations.

The protection of investors and the integrity of the financial ecosystem remain paramount, as authorities continue to navigate the evolving landscape of digital assets and exchanges.

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