Nigeria's Securities and Exchange Commission has recently defined the operations of Binance Nigeria Limited, a local unit of the largest crypto exchange by trading volume, as illegal. The commission has stated that the firm is not registered or regulated in the country. The agency also pointed out that any public member doing business with Binance Nigeria Limited would take risks. - Also, the statement warned investors that investing in crypto assets is extremely risky and may result in total loss.
- Binance was further ordered to halt immediately seeking investments from Nigerians, ceasing operations.
- The Nigerian commission also underlined that it could take further regulatory action against the platform and similar exchanges operating in the country.
- In response, a Binance spokesperson stated that they are aware of the legal notice and Binance Nigeria Limited is not affiliated with the company.
- The move came several days after the U.S. Securities and Exchange Commission (SEC) filed a 136-page complaint against Binance and CEO Changpeng Zhao (CZ) over U.S. law violations with 13 charges.
Nigeria is one of the most crypto-interested countries, though its government started cracking down on digital assets in 2021. - The banks in the country are forbidden to offer services to the crypto exchanges and process crypto transactions.
- Currently, a central bank digital currency (CBDC) dubbed eNaira is in use in Nigeria, and the Nigerian Securities and Exchange Commission recently announced its plans to allow tokens backed by assets like equity, debt, and property on licensed digital asset exchanges.
- In May, the Nigerian government's Federal Executive Council also approved the country's national blockchain policy as part of its efforts to switch to a digital economy.
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