Crypto Traders in shock as SEC bans Binance Operation in Nigeria, announce it as illegal operation

The Nigerian Securities and Exchange Commission (SEC) has ruled that Binance’s operations are unlawful.

Any Nigerian who trades on Binance Nigeria Limited, a division of the well-known international cryptocurrency exchange Binance, does so at their own risk, according to a statement posted on the company’s website.

SEC warned Nigerians to use caution while transacting with unregistered and unregulated platforms like Binance Nigeria, noting that the company’s actions are against Nigerian law. “The Securities and Exchange Commission (the Commission) has been alerted to the website operated by Binance Nigeria Limited, which invites the Nigerian public to trade crypto assets on its various web and mobile-enabled platforms,” the Securities and Exchange Commission (SEC) said in a statement.

Because the Commission neither registered nor oversaw Binance Nigeria Limited, its operations in Nigeria are prohibited. Dealings between investors and the entity are at the risk of the investor.

The Commission, the regulatory body with the legal responsibility for investor safety, warns Nigerians against investing in cryptocurrencies and financial products and services related to them if the service provider or its platform is not registered with or governed by the Commission. Nigerian investors are thus informed that trading in cryptocurrencies has a very high level of risk and might result in complete loss of capital.

Binance Nigeria Limited is hereby ordered to immediately cease soliciting Nigerian investors in any way by virtue of this circular.
The Commission will cooperate with other regulators in Nigeria to provide more guidance on this issue and will provide updates on any additional regulatory measures relating to the operations of Binance Nigeria Limited and other platforms of a similar nature.

Source: Instablog