The Nigerian Securities and Exchange Commission (SEC) reaffirmed its stance on the illegality of Binance’s operations in Nigeria. In a new circular issued on July 28, the SEC ordered all crypto platform providers to immediately cease all business activities involving Nigerian citizens. The commission specifically mentioned Binance’s official website as the platform used to encourage Nigerian people to trade Bitcoin and altcoins. Here are the details…
Warning came for Bitcoin and altcoin exchange
This isn’t the first time the SEC has addressed this issue. In June 2023, the Commission warned Binance Nigeria Limited of its illegality, and Binance responded by stating that the company had no affiliation with the platform in question. However, the SEC’s recent notice reiterates its stance and warns that Binance’s activities in Nigeria are neither registered nor regulated, making them illegal. The SEC highlighted its role as a regulatory body charged with protecting investors and strongly advised the Nigerian public not to invest in crypto assets due to the high level of risk associated with such investments. The volatile nature of the cryptocurrency market can lead to significant losses and investors should be careful and do extensive research before getting involved in crypto trading.
As part of its circular, the SEC directed all platform providers making requests to Nigerian investors to immediately cease such activity. Failure to comply with this directive may lead to further regulatory action against these operators and related platforms. It is critical that the investing public understand the consequences of interacting with entities that are not registered or regulated by the SEC. Investing in unregulated platforms carries significant risks, including the lack of legal protections and remedies in the event of any fraudulent activity or investment mishaps.
SEC provides guidance for cryptocurrencies
The SEC has also pledged to collaborate with other regulatory bodies in Nigeria to provide additional guidance on cryptocurrencies and their regulation. This approach aims to create a comprehensive framework that protects investors and maintains financial stability in the country. Binance, one of the largest cryptocurrency exchanges in the world, has faced scrutiny from regulators in various jurisdictions. This latest directive from the Nigerian SEC reflects a growing concern among global financial authorities about the potential risks associated with unregulated crypto trading.
As a result, the Nigerian Securities and Exchange Commission has definitively declared Binance’s activities in Nigeria illegal and instructed all crypto platform providers to cease any form of solicitation for Nigerian investors. The main priority of the SEC is investor protection and strongly advises the public to be cautious when dealing with cryptoassets and avoid dealing with unregistered or regular entities.
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