The Securities and Exchange Commission of Nigeria (SEC) has issued a directive to Binance, the world’s largest cryptocurrency exchange, ordering them to halt the solicitation of Nigerian investors. In a statement released on Friday, the commission raised concerns about Binance Nigeria Limited operating without proper registration and regulation, rendering its activities in Nigeria illegal.
According to the statement issued by the SEC, Binance Nigeria Limited has been operating a website that solicits the Nigerian public to trade crypto assets on its web and mobile platforms. However, the commission clarifies that Binance Nigeria Limited is neither registered nor regulated by them, making its operations in Nigeria illegal. The SEC emphasizes that any individual engaging with the entity does so at their own risk.
As the regulatory body responsible for investor protection, the commission urges Nigerians to exercise caution when investing in crypto-assets and related financial products and services. It advises investors to verify that the service provider and its platform are registered and regulated by the SEC. The SEC highlights the high risks associated with investing in crypto-assets, noting that such investments can result in the total loss of funds.
In light of these concerns, Binance Nigeria Limited has been directed to immediately cease soliciting Nigerian investors in any form. The SEC states that it will provide updates on further regulatory actions related to the activities of Binance Nigeria Limited and similar platforms. Additionally, the commission intends to collaborate with other regulatory bodies in Nigeria to offer additional guidance on this matter.
This move by the Securities and Exchange Commission reinforces the importance of regulatory compliance in the cryptocurrency industry. As the popularity of crypto-assets continues to grow, it becomes increasingly crucial for investors to prioritize security and seek out platforms that are duly registered and regulated by relevant authorities. The SEC’s warning serves as a reminder to exercise diligence and make informed decisions when engaging with crypto-related investments in Nigeria.