Binance operations in Nigeria termed illegal by Nigeria’s SEC

The Securities Exchange Commission has issued a statement via their website that claimed that Binance Nigeria Limited, a subsidiary of the well-known global cryptocurrency exchange Binance,  is not registered or regulated by the SEC, which makes its operation in Nigeria illegal and has been actively promoting its web and mobile-enabled platforms to the Nigerian public.

The SEC made it clear that the company’s activities goes against Nigerian law urging Nigerians to exercise care when dealing with unregistered and unregulated platforms such as Binance Nigeria. 

This awareness comes after Binance.US, the U.S. subsidiary of the global exchange, was sued by the U.S. SEC, accusing them of operating an illegal securities exchange. This also comes after Nigeria passed a 10% tax on digital assets in its new Finance Act for the year 2023.  

According to the statement published by SEC, they said;

“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 action against Binance Nigeria Limited is also indicative of a growing trends among regulators worldwide, to address the challenges posed by the cryptocurrency market.

The Commission has promised to give updates on its progress in addressing this issue and to partner with other regulatory bodies within the country to establish comprehensive guidelines and regulations for the crypto market. 

As Nigeria continues to upgrade its regulatory system for the crypto market, investors should stay updated  about the SEC and other regulatory bodies. By educating themselves and seeking out reliable and regulated platforms, Nigerian investors can navigate the crypto market with greater confidence and protect their hard-earned capital. 

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