In an official statement released on Friday, SEC Nigeria underscored that Binance Nigeria Limited has neither obtained registration nor undergone regulation by the commission. Consequently, the exchange’s activities within Nigeria are considered unlawful and pose potential risks to investors.
The commission, entrusted with the statutory mandate of investor protection, urged the Nigerian public to exercise extreme caution when engaging with Binance that any dealings with the platform would be done at the individual’s own risk.
“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,” the statement said.
The SEC further noted that “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.”
This announcement from SEC Nigeria serves as a reminder to investors of the importance of adhering to regulatory guidelines and seeking out registered and regulated platforms for cryptocurrency investments. By taking this decisive step, the commission aims to protect the interests of investors in the Nigerian market and maintain the integrity of the financial system.
Crypto enthusiasts and investors alike will be closely monitoring the developments surrounding this decision, as it is expected to have a significant impact on the cryptocurrency ecosystem within Nigeria and potentially influence the regulatory landscape of other African countries.