The Securities and Exchange Commission (SEC) has issued a circular declaring the activities of Binance in Nigeria as illegal. According to the circular dated June 09, 2023, the SEC has stated that any Nigerian engaging in trading on Binance Nigeria Limited, a subsidiary of the global cryptocurrency exchange Binance, is doing so at their own risk.
The circular highlights that Binance Nigeria Limited is not registered or regulated by the Commission, making its operations in Nigeria illegal. The SEC emphasizes that any member of the public who deals with the entity is doing so at their own risk.
Furthermore, as the regulator responsible for investor protection, the SEC advises Nigerians to exercise caution when investing in crypto-assets and related financial products and services. It warns that investing in crypto-assets carries significant risks and can result in the total loss of investments if the service provider or platform is not registered or regulated by the Commission.
In response to the situation, the SEC has directed Binance Nigeria Limited to immediately cease soliciting Nigerian investors in any form. The Commission also stated that it will provide updates on further regulatory actions regarding Binance Nigeria Limited and similar platforms. Additionally, the SEC plans to collaborate with other regulators in Nigeria to provide additional guidance on this matter.
It is important to note that the information provided is based on the contents of the circular issued by the SEC and should be interpreted as such until further official updates or statements are released.