Regulator of the Nigerian capital market, the Securities and Exchange Commission (SEC), has declared the activities of Binance Nigeria Limited, the local unit of the cryptocurrency platform, Binance, as illegal.
A statement on Friday titled, ‘Circular on the Activities of Binance Nigeria Limited’ therefore directed the platform to desist from soliciting Nigerian investors in any form whatsoever.
The statement, published on SEC’s website, noted that Binance Nigeria Limited has been actively promoting its web and mobile-enabled platforms to the Nigerian public whereas, Binance Nigeria is not registered or regulated by the SEC, making its operations in Nigeria illegal.
The statement read: “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.
“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 shall provide updates on further regulatory actions with respect to the activities of Binance Nigeria Limited, and other similar platforms and shall work with other regulators in Nigeria to provide further guidance on this matter.”
