The Nigerian Securities and Exchange Commission has officially announced the illegality of Binance’s operations in Nigeria. In a circular published on June 9, 2023, the commission clarified that Binance is not registered or regulated by them, making its activities within the country unlawful. As a result, individuals engaging in transactions on the platform are assuming personal risks.
It said, “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 commission additionally advised Nigerians to exercise caution when investing in crypto-assets and any financial products or services related to crypto-assets, particularly if the service provider or platform is not registered or regulated by the commission.
It added, “Nigerian investors are hereby warned 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.”
The SEC has announced its intention to keep the public updated on additional regulatory measures pertaining to the operations of Binance Nigeria Limited and similar platforms. The SEC plans to collaborate with other regulatory bodies in the country to provide more guidance on this matter.
This action by the SEC has the potential to disrupt the cryptocurrency market, particularly in light of recent challenges faced by other popular platforms like Paxful.
Furthermore, Binance is currently involved in a lawsuit in the United States. The US Securities and Exchange Commission has filed charges against Binance, leading to the suspension of US dollar deposits and withdrawals by Binance US as a result of the SEC’s enforcement action.
Binance said, “In an effort to protect our customers and platform, today we are suspending USD deposits and notifying customers that our banking partners are preparing to pause fiat (USD) withdrawal channels as early as June 13, 2023. We encourage customers to take appropriate action with their USD.”