Nigerian Securities Regulator Declares Binance’s Operations Unlawful, Bans Crypto Platform Solicitations

In a recent development, Nigeria’s Securities and Exchange Commission (SEC) has declared the activities of cryptocurrency exchange Binance within the country as illegal. The regulatory body issued a notice on Friday, reinforcing its stance on the matter and extending the prohibition to all crypto platform providers, urging them to cease soliciting Nigerian investors.

The SEC’s notice reiterated a warning initially issued on June 9, which had referenced a company named Binance Nigeria Ltd. Despite Binance’s previous statement to CoinDesk disavowing any affiliation with the mentioned entity, the SEC’s latest communication pointedly referred to Binance’s official website, https://www.binance.com.

Emphasizing its standpoint, the SEC stated, “The commission reiterates that the activities of Binance: https://www.binance.com, including any similar platforms used by the company to solicit investors, lack registration or regulation by the commission. Consequently, the operations conducted by Binance in Nigeria are deemed unlawful.” Additionally, the regulator directed all platform providers associated with cryptocurrency to immediately halt their outreach to Nigerian investors.

This development comes after the SEC’s prior declaration last year, classifying all forms of cryptocurrency as securities. While Nigeria had been cautiously processing crypto exchange applications for trial registration, full registration remains contingent upon an agreement with the central bank. The central bank’s current stance restricts local financial institutions from engaging with crypto service providers.

In a broader cautionary note, the SEC advised the public to exercise caution when investing in crypto assets or other offerings provided by entities not sanctioned by the commission. The circular concluded with a clear directive to all platform providers involved in such solicitations, instructing them to cease approaching Nigerian investors in any capacity.

As of press time, Binance had not responded to CoinDesk’s request for comment on this matter. The evolving situation underscores the dynamic regulatory landscape surrounding cryptocurrencies and their operations within various jurisdictions.