Nigerian SEC Calls Binance Operations Illegal in the Country

The world’s largest crypto exchange Binance faces one more regulatory roadblock and this time it’s in the African country of Nigeria. Last week, Nigeria’s Securities and Exchange Commission (SEC) called Binance’s operations as illegal in the country.

The SEC issued a notice on Friday, July 28, ordering all crypto platform providers to cease soliciting Nigerian citizens. The SEC restated a previous warning about a company named Binance Nigeria Ltd., which Binance had previously clarified was not associated with them. However, in the recent notice, the SEC specifically mentioned the crypto exchange’s website. The official announcement from the Nigerian SEC reads:

The Commission again reiterates that the activities of Binance, https://www.binance.com and any such other platform through which the Company solicits investors 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, making such solicitation is doing so at his/her own risk.

The Nigerian SEC, as the regulatory authority responsible for investor protection, issues a warning to the public about the high level of risk associated with investing in crypto-assets. They emphasize that such investments may lead to the total loss of invested funds.

The Commission also advises the public to exercise caution when considering investments in crypto-assets. They should not consider products offered by entities, not registered or regulated by the Commission.

Nigeria, Crypto and Binance

Nigeria has undertaken a tough stand on public cryptocurrencies Last year, the SEC made it clear that it considers all cryptocurrencies as securities. The country has been evaluating crypto exchange applications for registration on a trial basis. However, they have put the full registration process on hold until the SEC reaches an agreement with the central bank. The central bank’s current stance prevents local financial institutions from engaging with crypto service providers.

Also, the Nigerian central bank has been pushing hard for the use of its CBDC Digital Naira. However, they have been struggling to find greater adoption among users.

While Binance faces strong rejection in Nigeria, it gets a roaring welcome in other crypto-friendly jurisdictions such as the UAE. Earlier today, Binance became the first exchange to secure an operational license in Dubai.