Binance Nigeria is considered illegal by the country’s securities regulator
Nigeria’s Securities and Exchange Commission (SEC) declared Binance’s operations in the country illegal and ordered the exchange to stop soliciting Nigerian investors.
On June 9, the Nigerian SEC declared that Binance was operating illegally in the country as it was neither registered nor regulated by the commission.
Binance Nigeria ordered to stop soliciting customers
The commission stated that Binance had encouraged the Nigerian public to trade cryptoassets on its unregistered platforms. As a result, the exchange faces an immediate ban on soliciting Nigerian investors in any form.
The SEC warned Nigerians against dealing with the entity. Binance is a top crypto platform in the African country, and has become the market leader after FTX’s collapse. In 2022, the exchange was in discussions with the Nigerian Export Processing Zones Authority (NEPZA) to establish a virtual free zone focusing on blockchain and the digital economy.
As of press time, Binance had not yet responded to BeInCrypto’s request for comment.
Meanwhile, the Nigerian SEC’s statement comes on the heels of several pro-crypto moves made by the country. In May, the regulator said it would allow tokenization of assets such as stocks, real estate and debt. The Nigerian government later approved the formal use of blockchain technology.
Binance Regulatory Woes Continue
Binance has recently faced increased regulatory pressure across several jurisdictions such as the US, Canada and Australia.
The US SEC filed a lawsuit against the exchange, CEO Changpeng ‘CZ’ Zhao, and its US subsidiary, Binance.US, on June 5, accusing it of violating federal securities law. Following the lawsuit, the regulator moved to freeze Binance US’s assets and issued a subpoena to Zhao.
Amid these issues, the Binance.US platform will transition to a “crypto-only exchange” and remove all of its USD pairs by June 13.
In addition, the US Commodity Futures Trading Commission (CFTC) sued the firm in March, alleging violations of commodity regulations. The CFTC has provided little update on the matter since then.
In the meantime, the platform has promised to continue to cooperate with regulators and will defend itself in court.
Binance exited the Canadian market in May, citing the unfavorable regulatory environment. Before then, the firm had canceled its derivatives license with the Australian Securities and Investments Commission (ASIC). At the time, the Norwegian Financial Supervisory Authority said it was reviewing the exchange’s compliance with local laws.
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