Nigeria’s SEC has issued an order against Binance Nigeria Limited, stating that its operations in the country are illegal. The news comes days after the US Securities and Exchange Commission (SEC) sued Binance and its founder Changpeng Zhao for violating securities laws.
According to the circular, Binance Nigeria Limited is neither registered nor regulated by the Commission and is therefore operating unlawfully. The Commission urged Nigerians to be cautious of investing in cryptocurrency-related financial products and services if the provider is not registered or regulated by the Commission. They warned that investing in crypto-assets is extremely risky and may result in a total loss of investment.
The SEC has also ordered Binance Nigeria Limited to immediately stop soliciting Nigerian investors in any form.
This is not the first time Binance has been accused of operating unlicensed activities. The US SEC has requested for the assets of Binance.US to be frozen and is looking for an alternative way to serve Changpeng Zhao with the court sermon.
Nigeria’s SEC had previously stated that it considers all crypto assets to be securities by default. They were processing registration applications from crypto firms on a trial basis but have not officially begun doing so until they reached an agreement with the Central Bank. Currently, it is illegal for banks in Nigeria to provide services to cryptocurrency platforms.
