The Nigerian Securities and Exchange Commission (SEC) has declared that Binance Nigeria’s operations are illegal. Binance Nigeria is one of the subsidiaries of Binance.
Binance has allegedly been pushing its web- and mobile-enabled services to Nigerian customers without complying with legal requirements or signing up with the commission, according to a statement posted on the SEC’s website on July 9.
The commission stated its worries, saying that because Binance Nigeria is neither regulated nor authorized by the SEC, its operations within the nation are considered illegal.
The SEC, the main regulatory body in charge of protecting investors, emphasized that using Binance Nigeria or any other unregistered platform carries a high risk and advised investors to exercise caution when dealing with crypto assets and related financial products and services.
The Nigerian SEC announced at the time when Binance was sued by the U.S. regulators for failing to register as a broker or exchange. Additionally, the case mentioned that Binance marketed and sold unregistered securities to the general public.
To achieve a compromise between a complete ban on crypto-assets and unregulated usage, Nigeria’s SEC unveiled laws for digital assets last year.
It occurred after the central bank of Nigeria prohibited the use of digital currencies by banks and other financial organizations in 2021.
Nigerian youths have overcome the limitations and embargo enforced by the traditional banking industry by embracing cryptocurrencies and using peer-to-peer trading platforms offered by cryptocurrency exchanges.
Authorities stress the need for investor protection and compliance within the crypto industry as regulatory scrutiny intensifies worldwide.
The measures implemented by Nigeria’s SEC reflect the growing attention being paid to the regulation of cryptocurrency exchanges and their activities. The results of these legal proceedings will have significant consequences for the future of crypto regulation, not only in Nigeria but also globally.