The Nigerian Securities and Exchange Commission (SEC) has issued a cautionary notice to local investors advising them against using Binance, the world’s largest cryptocurrency exchange.
SEC again reiterates that the activities of Binance is neither registered nor regulated by the Commission and its operations in Nigeria are illegal.
Please see the latest Circular on Binance below. https://t.co/fzINNi3aX5 pic.twitter.com/aCz26JUiS0
— SEC Nigeria (@SECNigeria) July 28, 2023
This warning was prompted by a previous circular released by the SEC, which highlighted a fraudulent company illicitly operating under the Binance brand.
The circular said that Binance Nigeria Limited, which it claimed was a a subsidiary of Binance, is conducting its operations in the country unlawfully. The commission emphasized that the company is not registered with them and therefore not subject to their regulations.
However, Binance would follow by issuing a cease and desist notice to the organization operating under the name Binance Nigeria Limited, in a move containing the blessing of CEO, Changpeng Zhao (CZ).
In addition, a spokesperson from Binance clarified that the mentioned entity in the circular is not connected to their company. The spokesperson further stated that Binance intends to seek clarification from the Nigerian SEC and emphasized their willingness to cooperate with the regulatory body regarding the subsequent actions to be taken.
But in a new circular published on July 28 2023, SEC has reiterated its message, pointing to the official Binance website:
“The Commission again reiterates that the activities of Binance, https://www.binance.com and any such other platform through which the Company solicits investors 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, making such solicitation is doing so at his/her own risk.”
According to SEC Nigeria, people must be wary of investing in crypto assets and other products offered or operated by entities not registered or regulated by the Commission.
“By this circular, all platform providers making such solicitations are hereby directed to immediately stop soliciting Nigerian investors in any form whatsoever.”
