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.
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