SEC: Binance operations in Nigeria illegal

The Securities and Exchange Commission (SEC) says the operation of Binance Nigeria Limited, a subsidiary of Binance, is illegal in the country.

SEC, in a statement published on its website on Friday, said the cryptocurrency platform has been actively promoting its web and mobile-enabled platforms to Nigerians.

The commission said the company is neither subject to its regulations nor registered.

“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,” SEC said. 

“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 said it will notify the public of any additional regulatory actions relating to the operation of Binance Nigeria Limited and other similar platforms. 

SEC added that it will collaborate with other Nigerian regulators to offer more clarification on the issue.

Binance, the world’s largest crypto trading platform, is facing similar issues of a crackdown from authorities in the United States — the latest being lawsuits filed by the country’s SEC.