The SEC labels Binance an illegal business and forbids its activity in Nigeria.
The website run by Binance Nigeria Limited has caught the attention of the Securities and Exchange Commission (the Commission), which is encouraging the Nigerian public to trade cryptocurrencies on its various web and mobile-enabled platforms.
Because the Commission neither registered nor oversaw Binance Nigeria Limited, its operations in Nigeria are prohibited. Dealings between investors and the entity are at the risk of the investor.
The Commission, the regulatory body with the legal responsibility for investor safety, warns Nigerians against investing in cryptocurrencies and financial products and services related to them if the service provider or its platform is not registered with or governed by the Commission. The following is a warning to Nigerian investors that trading in cryptocurrencies is extremely dangerous and could result in the complete loss of their investment.
Binance Nigeria Limited is hereby ordered to immediately cease soliciting Nigerian investors in any way by virtue of this circular.
The Commission will collaborate with other Nigerian regulators to provide more guidance on this issue and will provide updates on any additional regulatory actions pertaining to the operations of Binance Nigeria Limited and other platforms of a similar nature.