The Securities and Exchange Commission (SEC) has issued a circular addressing the activities of Binance Nigeria Limited, a popular cryptocurrency exchange platform. The circular highlights that Binance Nigeria Limited is operating illegally in Nigeria as it is neither registered nor regulated by the Commission.
As the regulatory body responsible for safeguarding investor interests, the SEC emphasizes that any individual engaging with Binance Nigeria Limited does so at their own risk. The need for registration and regulation raises concerns about the safety and security of investments made through the platform.
In addition, the Commission urges Nigerians to exercise caution when investing in crypto-assets and related financial products and services. It stresses that investors should be wary of committing their funds if the service provider or platform is not registered or regulated by the Commission. The SEC warns that investing in crypto-assets carries significant risks and may lead to the complete loss of investments.
The circular serves as a directive to Binance Nigeria Limited, ordering the platform to cease all forms of solicitation targeting Nigerian investors immediately. The Commission has also assured the public that it will provide updates regarding further regulatory actions concerning Binance Nigeria Limited and other similar platforms.
This is not the first time Binance has had a fallout with the SEC. A few days ago, The U.S. Securities and Exchange Commission (SEC) announced a lawsuit against Binance stating that Binance and its affiliate BAM Trading operated as an unregistered securities exchange, broker-dealer, and clearing agency. The SEC also claimed that Binance sold unregistered securities, including its native tokens BNB and BUSD.
The SEC has also sued Coinbase for violating rules related to services it has offered as securities.
The SEC’s intervention regarding Binance Nigeria Limited aims to safeguard the interests of Nigerian investors and promote a secure investment. Nigerians are advised to stay informed about the regulatory landscape and exercise caution when dealing with crypto-assets and related services.
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