The activity of the cryptocurrency exchange Binance is illegal in Nigeria. This was said by the local SEC.
“In addition to the Commission’s earlier circular of 9 June 2023, the activities of Binance, www.binance.com, and any other platform through which the company solicits investors are not registered and not regulated by the Commission,” the statement said.
SEC representatives added that an investor who chooses to engage with the platform does so at their own risk.
“The Commission hereby warns the public that investing in crypto assets carries a high level of risk and may lead to a complete loss of funds,” the regulator stressed.
In June the SEC stated that Binance Nigeria Limited’s activities were illegal. However, at Binance called the organization ‘fraudulent’ and demanded that it cease operations.
In January 2022 the companyblocked 281 accounts of Nigerian traders in order to prevent money laundering and safeguard the platform.
As reported in May 2023, the SEC said that cryptocurrencieswill remain banned. An exception could be asset-backed tokens.
The agency does not intend to issue licenses to crypto platforms until an agreement on standards is reached with the local central bank. In 2021, the latterforbidden commercial financial institutions from providing services to Bitcoin exchanges and to companies dealing with digital assets.