Key Takeaways
- The SEC emphasized that Binance lacks the required license to operate within the country.
- The latest notice extends the warning to all platform providers associated with cryptocurrencies, emphasizing the necessity of halting any solicitations directed at Nigerian investors.
Nigeria’s Securities and Exchange Commission (SEC) has delivered a stern warning to crypto platform providers and investors, declaring that Binance’s operations within the country are illegal. In a notice issued on Friday, the SEC ordered all crypto platform providers to cease soliciting Nigerian citizens.
This recent notice is the second warning issued by the Nigerian regulator concerning Binance, a major global cryptocurrency exchange. The SEC emphasized that Binance lacks the required license to operate within the country and underscored the high risks associated with investing in unregulated platforms, highlighting the potential for total loss of investments.
“The commission again reiterates that the activities of Binance, and any such other platform through which the company solicits investors, are neither registered nor regulated by the commission, and its operations in Nigeria are therefore illegal,” the SEC stated.
In June, the SEC had already warned against Binance Nigeria Limited, directing the entity to immediately cease soliciting Nigerian investors in any form. The latest notice echoes this sentiment and extends the warning to all platform providers associated with cryptocurrencies, emphasizing the necessity of halting any solicitations directed at Nigerian investors.
Amidst these developments, the SEC also issued a general caution to the public, urging them to exercise caution when investing in crypto assets or any products offered by entities that are not registered or regulated by the Commission.
The recent regulatory actions taken against Binance in Nigeria coincide with other challenges the exchange has been facing on the global front. Binance voluntarily withdrew its application to operate in Germany following reports that BaFin, Germany’s regulatory agency, had declined to issue a license to the exchange last month.
Moreover, Binance has encountered setbacks in multiple countries, announcing its departure from the Netherlands, Cyprus, Canada, and Australia. Additionally, the exchange has faced legal challenges, as it was charged by the U.S. Securities and Exchange Commission (SEC).
