SEC Shuts Down Binance Nigeria: Investing in Crypto-Assets is Risky

Juni 13, 2023 0 Comments

Summary

• Nigeria’s Securities and Exchange Commission (SEC) has ordered Binance Nigeria Limited to stop all operations due to the fact that it is not registered or regulated by the Commission.
• This order follows days after the US SEC sued Binance and its founder CZ for violations of securities laws.
• The Commission urged Nigerian investors to be wary of investing in crypto-assets without proper registration or regulation from the Commission, as such investments may result in a total loss of their investment.

Nigeria’s SEC orders Binance Nigeria Limited to stop operations

Nigeria’s Securities and Exchange Commission (SEC) said on Friday that Binance Nigeria Limited is neither registered nor regulated and its operations in Nigeria are thus illegal. This comes days after the US SEC sued Binance and its founder CZ for violating securities laws in the country.

Previous Statement By SEC

The Nigerian regulator had previously stated that all crypto assets should be treated as securities by default. As such, any trading activities would need to be done through properly registered exchanges with adequate regulations enforced by the commission.

Order Against Binance

The circular issued by the Nigerian SEC directed Binance Nigeria Limited to immediately stop soliciting Nigerian investors in any form whatsoever. Thus, all trading activities need to cease until further notice from the commission.

Warning To Investors

The commission warned Nigerians against investing in crypto-assets if they are not provided through a service provider/platform which is registered or regulated by the Commission, as such investments may result in total loss of their funds.