According to the Securities and Exchange Commission (SEC), Binance Nigeria Limited, which is a subsidiary of Binance, is conducting its operations in the country unlawfully.
#Binance activities in Nigeria termed as 'illegal' and ordered to immediately cease operations by @SECNigeria pic.twitter.com/iWy7jEw00H
— BitKE (@BitcoinKE) June 12, 2023
In a statement released on its website, the Securities and Exchange Commission (SEC) stated that Binance has been actively marketing its web and mobile platforms to Nigerians. The commission emphasized that the company is not registered with them and therefore not subject to their regulations.
“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,” SEC said.
“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.”
SEC Nigeria is the regulator with the statutory mandate of investor protection in the country and has warned 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.
The SEC has maintained 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.”
In addition, the commission said it will notify the public of any additional regulatory actions relating to the operation of Binance Nigeria Limited and other similar platforms. It will also collaborate with other Nigerian regulators to offer more clarification on the issue.
This action comes the same week that Binance, along with its CEO, Changpeng Zhao, are facing 13 charges filed by the Securities Exchange Commission in the United States. These charges include allegations of commingling customers’ funds and attempting to circumvent U.S. securities laws through the use of ‘sham controls’ to determine business relationships with the company.
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