The Nigerian government, led by President Bola Tinubu, has taken a decisive step by imposing a ban on the operations of Binance Nigeria Limited, a prominent cryptocurrency exchange platform.
News About Nigeria reports that this move was made evident through a circular issued by the Securities and Exchange Commission (SEC).
The circular released by the SEC clearly emphasized that Binance Nigeria Limited has been operating without proper registration or regulation, making its activities within Nigeria illegal.
The Commission explicitly stated that the website operated by Binance Nigeria Limited has been soliciting the Nigerian public to engage in cryptocurrency trading on its various web and mobile platforms.
It is crucial to note that Binance Nigeria Limited is neither registered nor regulated by the SEC.
Consequently, any Nigerian individual who chooses to engage with the platform does so at their own risk.
As the regulatory authority responsible for safeguarding investors, the Commission urges Nigerians to exercise caution when investing in crypto-assets and related financial products and services.
It explicitly advised against engaging with service providers or platforms that lack registration or regulation by the Commission.
The Commission wants to make it clear to Nigerian investors that investing in crypto-assets carries significant risks and could potentially lead to the complete loss of their investment.
To address this issue, the circular directed Binance Nigeria Limited to immediately cease soliciting Nigerian investors through any means.
Furthermore, the Commission pledged to provide updates on additional regulatory actions concerning the activities of Binance Nigeria Limited and similar platforms.
It also expressed its commitment to collaborating with other regulatory bodies in Nigeria to offer further guidance on this matter.
