SEC Declares Binance Illegal in Nigeria, Issues Operation Ban

SEC Declares Binance Illegal in Nigeria, Issues Operation Ban

The Securities and Exchange Commission (SEC), the government regulatory body responsible for regulating the financial markets, has raised serious concerns about the online activities of a company known as Binance Nigeria Limited. The Commission’s primary concern lies with the company’s online platform, where they have been noted to be engaging with the Nigerian public and encouraging them to trade in crypto assets. The platform operates across both web and mobile interfaces, thereby making it easily accessible to a broad audience.

However, it is the Commission’s obligation to safeguard the interests of the public, and hence it has been highlighted that Binance Nigeria Limited lacks the necessary regulatory credentials to operate within the Nigerian jurisdiction. The firm is not registered under the Commission, which is a prerequisite for such financial dealings within Nigeria. This critical shortcoming effectively renders the operations of Binance Nigeria Limited in Nigeria as unlawful.

The Commission, therefore, wishes to emphasize to any prospective or current investor engaging with Binance Nigeria Limited that they are taking on a significant risk. Given the lack of regulatory oversight on Binance Nigeria Limited, these individuals are dealing with the entity entirely at their own risk.

Investor protection falls under the purview of the Commission’s responsibilities, and it is the Commission’s duty to alert Nigerians of the potential hazards associated with investing in certain financial vehicles. Crypto assets and their related financial products and services carry a substantial risk. This risk is exacerbated when the service provider in question or its platform is not registered or regulated by a recognized regulatory body such as the Commission.

Investing in crypto assets carries the potential for high returns, but this must be counterbalanced with the understanding that these assets are highly volatile and may lead to significant, if not total, loss of the invested capital. Therefore, the Commission is issuing a stern warning to Nigerian investors regarding the inherent dangers of investing in crypto assets.

As part of its proactive measures, the Commission is issuing a directive to Binance Nigeria Limited, mandating them to cease and desist from reaching out to Nigerian investors in any capacity. The firm must not engage with the Nigerian public, either in promoting their services or soliciting any form of investment.

The Commission reaffirms its commitment to ensuring the fair and transparent operation of financial markets and to protecting the investing public. It will continue to monitor the activities of Binance Nigeria Limited and similar platforms that operate within its jurisdiction. It is also ready to collaborate with other regulatory bodies in Nigeria to develop comprehensive guidance on crypto-asset-related issues.

In the future, the Commission will provide updates on any further regulatory actions concerning Binance Nigeria Limited and similar platforms. These updates will include any measures taken to address and rectify any regulatory discrepancies. Therefore, the Commission advises the Nigerian investing public to remain vigilant and keep abreast of these updates.


Leave a reply