Binance’s Operations Have Negative Impact On Nigeria’s Financial System, Says SEC Director

Binance’s Operations Have Negative Impact On Nigeria’s Financial System, Says SEC Director

Abdulkadir Abbas, a Director at the Security and Exchange Commission (SEC), has asserted that Binance’s operations adversely affect Nigeria’s financial system….read also Gunmen Kidnap One, Kill Security Guard In Oyo

During a hearing at the Federal High Court in Abuja on Friday, May 17, Abbas, who heads the Registration, Exchanges, and Market Infrastructure Department at SEC, revealed that Binance operated illegally in Nigeria and bypassed the established currency trading regulations.

Detailing how Binance and its representatives were summoned by the National Security Adviser (NSA) to discuss their operations and their impact on the Nigerian economy, Abbas stated:

“It was evident at the meeting that Binance’s mode of operation contradicts the provisions of the Investment and Securities Act 2007. Besides operating without registration in Nigeria and conducting unauthorized public solicitation, Binance facilitates naira peer-to-peer (P2P) transactions for crypto assets.”

“The naira P2P system utilized by Binance deviates from the standard trading channels due to the Central Bank of Nigeria’s (CBN) prohibition on banks providing certain settlement platforms for crypto exchanges. The widespread adoption of Binance’s naira P2P model by Nigerian users created instability and volatility in the exchange rate, impacting financial system stability.”

Abbas highlighted that the exchange rate quoted on Binance’s platform was disconnected from official rates and played a significant role in determining the value of the naira, despite lacking any fundamental basis.

He emphasized that Binance’s operation without SEC registration violated the Investment and Securities Act 2007 and constituted unauthorized solicitation to Nigerians.