SEC declares Binance operation illegal in Nigeria, warns cryptocurrency investors

The operations of Binance Nigeria Limited, a subsidiary of the cryptocurrency exchange, Binance, have been declared illegal by the Securities and Exchange Commission (SEC).

In a statement by SEC on Friday, the capital market regulator said Binance is not a registered company under SEC, and its operation is not regulated by the commission.

SEC warned that any investor trading cryptocurrencies on the Binance exchange platform do so at their own risk, as it disclosed that the firm owned by Zhao Changpeng, has been targeting Nigerians through digital promotions.

The regulator said Nigerians should be wary of investing in crypto-assets, and crypto-asset related financial products if they are not registered or licensed by SEC.

Prior to the disclosure by the commission in Nigeria, Binance had received a lawsuit from United States’ SEC over its operations in the country.

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In the statement by SEC Nigeria, the regulator said: “The attention of the Securities and Exchange Commission (the Commission) has been drawn to the website operated by Binance Nigeria Limited, soliciting the Nigerian public to trade crypto assets on its various web and mobile-enabled platforms.

“Binance Nigeria Limited is neither registered nor regulated by the Commission and its operations in Nigeria are therefore illegal. Any member of the investing public dealing with the entity is doing so at his/her own risk.

“As the regulator with the statutory mandate of investor protection, the Commission urges Nigerians to be wary of investing in crypto-assets, and crypto-asset related financial products and services if the service provider/its platform is not registered or regulated by the commission.

“Nigerian investors are hereby warned that investing in crypto-assets is extremely risky and may result in total loss of their investment.

“By this circular, Binance Nigeria Limited is hereby directed to immediately stop soliciting Nigerian investors in any form whatsoever.”

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