According to the Securities and Exchange Commission (SEC) of Nigeria, all crypto platform providers, including Binance, have been given the order to cease their operations and to refrain from approaching investors in Nigeria.
The SEC has determined that the activities that Binance engages in within the country are unlawful. This notice was a repetition of a previous warning that had been distributed on June 9 and had made reference to a company known as Binance Nigeria Ltd. Binance had previously stated, to everyone’s satisfaction, that they had no affiliation with this particular company.
As part of their ongoing investigation into the cryptocurrency exchange, the SEC has issued a new notice in which they make specific reference to Binance’s website.
Binance, including its website (https://www.binance.com), and other platforms associated with the company are not registered or regulated by the commission, as stated by the Securities and Exchange Commission (SEC), which reaffirmed its position.
As a result, the activities they engage in within the borders of Nigeria are unlawful. In addition, the SEC ordered all providers of cryptocurrency platforms to refrain from approaching investors in Nigeria.
In December of 2017, the SEC decided that all cryptocurrencies should be considered securities. Trial evaluations of applications to register as cryptocurrency exchanges have been taking place across the nation; however, full registration is contingent on reaching an agreement with the country’s central bank.
Due to the restrictions imposed by the central bank, local financial institutions are unable to engage in business with crypto service providers.
The Commission issued a more general warning, advising the public to exercise caution when investing in crypto assets and products offered by entities not registered or regulated by the SEC.
According to the statement, the circular gives instructions to all platform providers who are engaged in soliciting Nigerian investors in any way to immediately stop doing so. “This circular instructs all platform providers engaged in soliciting Nigerian investors, in any manner.”