Binance, the largest cryptocurrency exchange globally, has accused ‘Binance Nigeria Limited’ of being a fraudulent organization, News About Nigeria reports.
Changpeng Zhao, the founder and CEO of Binance, made this statement on his verified Twitter account on Sunday.
In response to this accusation, the Nigeria Securities and Exchange Commission (SEC Nigeria) declared that the operations of Binance Nigeria Limited in the country are illegal.
According to the SEC, the entity is not registered or regulated by the commission, making its activities in Nigeria unlawful.
The commission further emphasized that individuals who choose to engage with this entity are assuming their own risks.
The SEC became aware of the situation through the website operated by Binance Nigeria Limited, which was soliciting the Nigerian public to engage in crypto asset trading on its platforms.
The commission’s statement serves as a warning to the public about the unauthorized status of this entity.
Binance is a blockchain ecosystem and cryptocurrency infrastructure provider, renowned for its extensive range of financial products, including the largest digital asset exchange.
However, the company has recently encountered a series of setbacks.
It has announced its departure from the Netherlands, Cyprus, Canada, and Australia. Additionally, Binance has faced charges from the U.S. Securities and Exchange Commission (SEC).
The SEC filed a lawsuit against Binance and its CEO, accusing the company of engaging in practices such as artificially inflating trading volumes, misappropriating customer funds, and providing misleading information to investors regarding its market surveillance controls.
Binance has disputed the charges brought forth by the SEC, asserting its innocence in the matter.
The legal battle between Binance and the SEC continues.
The allegations against Binance Nigeria Limited and the subsequent response from Binance highlight the growing concerns surrounding the cryptocurrency industry’s regulation.
Regulatory bodies are seeking to enforce stricter guidelines to ensure investor protection and prevent illicit activities within the market.
Investors and users of cryptocurrency platforms must exercise caution and conduct thorough research before engaging with any entity.
It is vital to verify the registration and regulatory status of platforms to mitigate potential risks associated with unregulated operations.
As the cryptocurrency landscape continues to evolve, it is crucial for industry participants to adapt to regulatory changes and comply with the legal frameworks established by governing bodies.
This will contribute to the overall credibility and trustworthiness of the cryptocurrency sector, ensuring a safer environment for all stakeholders involved.
