Binance's Operations Deemed Unlawful By Nigeria's SEC, Investors Cautioned On Risks By Benzinga

2023-07-31 17:24:00

Investing.com UK

Benzinga - Nigeria's Securities and Exchange Commission (SEC) has reiterated that the activities of Binance (CRYPTO: BNB), a leading cryptocurrency exchange, are illegal in the country.

The regulator has issued a warning to the public about the risks associated with investing in crypto-assets and other products offered by entities not registered or regulated by the Commission.

Binance's Unregistered Operations

In a circular dated June 9 this year, the Commission highlighted that Binance's website, used for soliciting the Nigerian public to trade crypto assets, is neither registered nor regulated by the Commission.

As a result, its operations in Nigeria are deemed illegal.

The Securities and Exchange Commission of Nigeria has notified investors that any interactions with Binance or comparable platforms are undertaken at their personal risk.

The Commission has directed all platform providers making such solicitations to immediately cease soliciting Nigerian investors in any form.

Also Read: Over One-Third Of 2021 Crypto Projects Have Not Delivered A Product -- Are You Invested In One Of Them?

These investments may result in a total loss, the Commission stated, as it urged the public to be wary of investing in crypto-assets and other products offered by entities not registered or regulated by the Commission.

The Commission further said it plans to collaborate with other regulators in Nigeria to provide further guidance on this matter.

Last year, Nigeria's SEC announced that it views all cryptocurrencies as securities. The country has been processing applications from crypto exchanges to register on a trial basis. However, full registration will not be completed until an agreement is reached with the central bank.

The central bank has blocked local financial institutions from interacting with crypto services providers, creating a significant hurdle for the integration of crypto services into the Nigerian financial system.

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Photo: Unsplash

2023-07-31 News