By Ogochukwu Isioma
Nigeria’s Securities and Exchange Commission (SEC) has banned Binance, world’s biggest cryptocurrency trading platform by volume, from operating in Nigeria.
The ban comes days after the United States (U.S)’ Securities and Exchange Commission (SEC) sued Binance for allegedly operating a “web of deception.”
In a statement on Saturday by Nigeria’s SEC, the commission directed Binance to “immediately stop soliciting Nigerian investors in any form whatsoever.”
SEC noted that the crypto exchange’s operations in Nigeria are illegal because the firm is neither registered nor regulated by the commission.
The SEC also warned Nigerian investors that investing in crypto assets is extremely risky and may result in total loss of their investment.
The statement on the website on SEC reads, “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.”
