In a statement, the Nigerian Securities and Exchange Commission (SEC) emphasized that Binance Nigeria is not registered with or subject to the SEC’s regulation, making its operations in Nigeria illegal.
In a statement posted to its website, the Securities and Exchange Commission (SEC) alleged that Binance Nigeria Limited, a branch of the well-known cryptocurrency exchange Binance, had been actively advertising its web and mobile platforms to Nigerian citizens.
However, the SEC has emphasized that Binance Nigeria’s operations are unlawful under Nigerian law, encouraging Nigerians to use caution when transacting with unregistered and unregulated platforms like this.
“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. “
“As the regulator with the statutory mandate of investor protection, the Commission urges Nigerians to be wary of investing in crypto-assets, and crypto-asset-related financial products and services if the service provider/its platform is not registered or regulated by the Commission”.
“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 Commission shall provide updates on further regulatory actions concerning the activities of Binance Nigeria Limited, and other similar platforms and shall work with other regulators in Nigeria to provide further guidance on this matter.”
The SEC’s caution against buying cryptoassets serves as a reminder to Nigerian investors of the dangers associated with this quickly changing and frequently unpredictable sector.
While cryptocurrencies have gained popularity worldwide, their decentralized nature and lack of regulation expose investors to significant risks.
Binance has recently stepped up its operations in Nigeria with several advertisements popping up on billboards, online, and on TV across major cities in the country.
The SEC’s circular regarding Binance Nigeria Limited marks the beginning of regulatory actions against unregistered and unregulated crypto platforms in Nigeria.
The SEC’s action against Binance Nigeria Limited also reflects a rising global tendency among regulators to confront the problems the cryptocurrency market has created.
The Commission has promised to keep the public informed of its progress in resolving this problem and to work with other national regulatory authorities to create thorough rules and regulations for the cryptocurrency market.
he SEC aims to safeguard the interests of Nigerian investors and ensure that they have access to transparent and regulated investment opportunities.
By cracking down on unregistered platforms, the SEC hopes to instil confidence in the crypto market and protect unsuspecting investors from falling victim to fraudulent schemes.
While cryptocurrencies offer numerous potential benefits, including financial inclusion and technological innovation, regulatory oversight is necessary to protect investors and ensure market integrity.
Nigeria, like many other countries, is in the early stages of formulating comprehensive regulations for the crypto market.
Investors should follow developments from the SEC and other regulatory authorities as Nigeria develops its regulatory framework for the cryptocurrency sector. Nigerian investors may navigate the cryptocurrency market with more confidence and preserve their hard-earned money by becoming informed and looking for reputable, regulated platforms.
