The Nigerian Securities and Exchange Commission (SEC) has deemed Binance’s activities in Nigeria to be illegal, as stated in a recently published circular on the commission’s website dated June 9, 2023.
The commission has emphasized that Binance is not registered or regulated by them, making its operations within the country unlawful.
The SEC has cautioned that individuals engaging in business on the Binance exchange are doing so at their own risk. The commission has brought attention to Binance Nigeria Limited’s website, which is soliciting Nigerian citizens to trade crypto assets on its various online platforms.
However, the SEC has clarified that Binance Nigeria Limited is not authorized by them, making its operations in Nigeria illegal. Therefore, any Nigerian investor involved with the platform is doing so at their own peril.
Furthermore, the commission has urged Nigerians to exercise caution when investing in crypto assets and related financial products and services. It emphasized that if a service provider or platform is not registered or regulated by the SEC, investors should be wary of engaging with them.
The SEC has stated that investing in crypto assets is highly risky and may lead to the complete loss of one’s investment.
In response to Binance’s activities, the SEC has directed Binance Nigeria Limited to immediately cease soliciting Nigerian investors through any means. The commission has indicated its intent to collaborate with other regulatory bodies in Nigeria to provide additional guidance on this matter and has promised to update the public on further regulatory actions concerning Binance Nigeria Limited and similar platforms.
This action by the SEC is expected to disrupt the crypto market, particularly following recent issues involving other prominent crypto platforms like Paxful. Additionally, Binance is currently facing a lawsuit in the United States after the US Securities and Exchange Commission pressed charges against the company on Monday.
As a result of the enforcement action taken by the US SEC, Binance US has announced the suspension of US dollar deposits and withdrawals. The platform has alerted its customers that its banking partners are preparing to halt fiat (USD) withdrawal channels as early as June 13, 2023.
Binance US has encouraged its customers to take appropriate measures regarding their USD holdings to protect their interests.
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