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Nigeria Securities and Exchange Commission warns against investing with Binance

Published

1 year ago

August 1, 2023

The Nigerian Securities and Exchange Commission (SEC) has issued a renewed warning to the public regarding investing with Binance. This caution follows a previous circular issued by the Commission in June 2023, which highlighted concerns about the solicitation of Nigerian citizens for crypto asset trading through Binance’s platform.

The SEC emphasizes that Binance and any similar platforms utilized by the company to attract investors are not registered or regulated by the Commission. Therefore, any engagement with Binance or its solicitations in Nigeria is considered illegal, and individuals who choose to invest with them assume all associated risks.

As the authoritative regulatory body responsible for safeguarding investor interests, the SEC underscores the high level of risk associated with investing in crypto assets, which can result in significant financial losses.

Consequently, the Commission urges the investing public to exercise caution when considering investments in crypto assets or any products offered by entities that lack registration and regulation by the SEC.

In accordance with this circular, all platform providers involved in such solicitations are mandated to immediately cease soliciting Nigerian investors.

The SEC vows to keep the public informed about any further regulatory actions concerning Binance and similar operators and platforms. Additionally, the Commission is actively collaborating with other regulatory authorities in Nigeria to provide comprehensive guidance on this matter.

As the situation unfolds, the SEC urges potential investors to exercise prudence and due diligence while dealing with crypto assets and to choose reputable and duly registered investment platforms to minimize risks.

Investors and the public are advised to stay updated on official communications from the SEC and exercise caution when considering investments in the crypto market.