Nigerian Securities Regulator Accuses Binance of Illegal Activities

The post Nigerian Securities Regulator Accuses Binance of Illegal Activities appeared first on Coinpedia Fintech News

Nigeria’s Securities and Exchange Commission recently issued a notice regarding cryptocurrency exchange Binance’s activities within the country. According to the SEC’s statement, Binance’s operations are considered illegal in Nigeria as the company is neither registered nor regulated by the commission. The notice also instructed all crypto platform providers to refrain from soliciting Nigerian citizens.

The SEC’s notice reaffirmed a warning initially issued on June 9, which mentioned a company named Binance Nigeria Ltd. Binance, however, clarified to CoinDesk that it was not affiliated with this entity. In its recent notice, the SEC specifically referred to Binance’s website as part of its concerns.

The SEC has previously classified all cryptocurrencies as securities. While Nigeria has been in the process of reviewing crypto exchange applications for registration on a trial basis, the final registration approval is pending an agreement with the central bank. The central bank has previously restricted local financial institutions from engaging with crypto service providers.

In a broader context, the SEC cautioned the public to exercise caution when investing in crypto assets or other products offered by entities that are not registered or regulated by the commission. The circular directed all platform providers involved in such solicitations to immediately cease reaching out to Nigerian investors in any manner.

It’s important for potential investors in Nigeria’s crypto market to stay informed about regulatory developments and verify the legitimacy of the platforms they interact with.

On Monday, Binance made an announcement stating that it had been granted a license to operate in Dubai. The company had previously received a Minimal Viable Product (MVP) license from Dubai’s Virtual Assets Regulatory Authority (VARA) in September 2022.

This initial license enabled Binance to establish a domestic bank account to hold clients’ funds locally, conduct crypto exchange operations, and provide payment and custody services. Having fulfilled the necessary pre-conditions, Binance has now successfully obtained the official license to continue its operations in Dubai.