Why Binance Operations In Nigeria Is Illegal – SEC

Why Binance Operations In Nigeria Is Illegal – SEC

The Nigeria Securities and Exchange Commission (SEC Nigeria) says the operation of Binance Nigeria Limited, the Nigerian subsidiary of the world’s largest cryptocurrency exchange, Binance, is illegal.

The commission, in a statement published on its website on Friday, said Binance Nigeria Limited is neither registered nor regulated by the commission and its operations in Nigeria are therefore illegal.

It noted that any member of the investing public dealing with the entity is doing so at his/her own risk.

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“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,” the statement said.

The SEC further noted that “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.”

The commission warned investors that investing in crypto-assets is extremely risky and may result in total investment loss.

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

“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 commission added.