Hideo Nakamura The Nigerian Securities and Exchange Commission (SEC) has declared the local affiliate of crypto exchange Binance as operating outside the bounds of the law. According to the SEC, Binance Nigeria is not registered or regulated by the Commission, rendering its operations in Nigeria illegal. The regulator has further cautioned individuals that engaging with Binance Nigeria comes with inherent risks.
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SEC Warns of High Risk Associated with Crypto in Nigeria
In a circular issued on June 9, the Nigerian SEC discouraged residents from conducting business with Binance Nigeria, citing its unlawful status. This announcement by the regulatory body followed closely on the heels of Binance’s troubled U.S. affiliate suspending dollar deposits and withdrawals.
In addition to branding the affiliate’s operations as illegal, the Commission has highlighted the dangers associated with investing in crypto assets or related products, particularly when dealing with unregistered or unregulated service providers. The regulator once again emphasized the risks involved in engaging with an asset class it considers “extremely risky.” The SEC directed the following message to Binance’s Nigerian affiliate:
By means of this circular, Binance Nigeria Limited is hereby instructed to immediately cease soliciting Nigerian investors in any manner.
Furthermore, the regulator promised to provide updates on subsequent “regulatory actions against Binance Nigeria and similar platforms.”
Nigerian SEC’s Move Applauded by Blockchain Association
Meanwhile, the Stakeholders in Blockchain Technology Association of Nigeria (SIBAN), a Nigerian blockchain and crypto association, has welcomed the Commission’s decision. SIBAN sees this as evidence of the SEC’s vigilance in monitoring the market and ensuring appropriate regulations are in place.
However, the SIBAN editorial team, in a statement later retracted, suggested that the regulator should collaborate with local stakeholders when formulating regulations. According to the team, such collaboration would foster the growth of local businesses in the digital asset market.
The SIBAN team also urged the SEC to consider implementing supportive systems for the national blockchain policy and expressed their willingness to work alongside the SEC for the betterment of the nation.
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What is the reason behind the Nigerian regulator declaring Binance Nigeria’s operations illegal?
The Nigerian Securities and Exchange Commission (SEC) has declared Binance Nigeria’s operations illegal because the local affiliate of the crypto exchange is neither registered nor regulated by the Commission. As a result, the SEC considers their operations in Nigeria to be in violation of the law.
What risks are associated with investing in crypto assets, as highlighted by the Nigerian SEC?
The Nigerian SEC has warned about the risks of investing in crypto assets or related products, especially when dealing with service providers that are not registered or regulated by the SEC. They describe the asset class as “extremely risky.” Therefore, investors should exercise caution and consider the potential dangers involved before engaging in such investments.
How did the Stakeholders in Blockchain Technology Association of Nigeria (SIBAN) respond to the SEC’s decision?
SIBAN, the Nigerian blockchain and crypto association, welcomed the SEC’s decision, acknowledging that it demonstrates the Commission’s commitment to regulating the market properly. However, they also suggested that the regulator should collaborate with local stakeholders when formulating regulations, in order to support the growth of local businesses in the digital asset market.
What actions does the Nigerian SEC plan to take against Binance Nigeria and similar platforms?
The Nigerian SEC has stated that it will take regulatory actions against Binance Nigeria and other similar platforms. However, specific details about the nature and timing of these actions have not been provided in the text. It is recommended to stay updated with the SEC’s announcements for further information on their regulatory actions.
4 comments
Wow, the Nigerian regulator really put the smackdown on Binance Nigeria! No registration, no regulation, just plain illegal operations. SEC ain’t playing around, folks! Gotta be careful with those risky crypto assets.
Binance just can’t catch a break! First, the U.S. lawsuit, now this from Nigeria’s SEC. It’s a mess. But hey, kudos to the Nigerian blockchain association for supporting the regulator’s decision. Collaboration is key, people!
Investing in crypto is always a rollercoaster ride, but now the SEC warns about the risks in Nigeria. Binance Nigeria better watch out! Wonder what kind of regulatory actions are coming their way. Stay tuned, folks!
This news about Binance Nigeria being labeled illegal by the Nigerian SEC is making waves. Will it impact the digital asset market? The blockchain association wants the SEC to work with local stakeholders. Hope they find a middle ground for everyone’s sake!