Nigeria’s SEC Shuts Down Binance Nigeria Limited for Illegal Operations
• The Nigerian Securities and Exchange Commission (SEC) recently ordered Binance Nigeria Limited to cease operations due to its lack of registration and regulation.
• This order comes after the US SEC sued Binance and its founder CZ for violating securities laws.
• The Nigerian SEC has warned investors to be wary of investing in crypto-assets if the service provider is not registered or regulated by them.
Binance Nigeria Ordered to Stop Operations
The Nigerian Securities and Exchange Commission (SEC) has issued an order against Binance Nigeria Limited, requiring it to immediately stop all operations in Nigeria. The order comes days after the US SEC sued Binance and its founder CZ, accusing them of violating securities laws.
Unregistered & Unregulated
According to a circular from the SEC, Binance Nigeria Limited’s operations are unlawful because they are neither registered nor subject to any regulation by the Commission. They have also urged Nigerians to be cautious when investing in crypto-assets as these investments can be extremely risky and could result in total loss of their investment.
US SEC Action Against Binance
The US Securities and Exchange Commission (SEC) had previously filed a lawsuit against Binance, its US affiliate, and its founder Changpeng Zhao for violating securities laws in the country. The regulator has further requested that assets of Binance’s US branch should be frozen until further notice. An alternative way is being sought out for serving Changpeng Zhao with court documents.
Nigerian SEC Stand on Cryptocurrencies
This is not the first time that the Nigerian SEC has taken action on cryptocurrencies as they had previously stated that all crypto assets were considered as securities by default. They have also warned investors about making investments into unlicensed platforms which could lead to a complete loss of their money without any recourse available for recovery.
In conclusion, investors should exercise caution when dealing with crypto-asset related products or services if they are provided by an entity which is not registered or regulated by the relevant authority like Nigeria’s SEC or US’s SEC as such investments may turn out be very risky leading to irreparable financial losses without any recourse available for recovery