Nigeria’s Securities and Exchange Commission
(SEC) has directed Binance Nigeria Limited to stop soliciting Nigerian investors in any form whatsoever immediately.
“By this circular, Binance Nigeria Limited is hereby directed to
immediately stop soliciting Nigerian investors in any form whatsoever.” It ordered.
SEC over the weekend
issued a circular on the activities of Binance Nigeria Limited, declaring its
operations in asking the Nigerian public to trade crypto assets on its various web
and mobile-enabled platforms illegal.
“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,” it stated.
The regulator’s circular follows a
lawsuit by the US securities watchdog last week Monday against the largest
global crypto exchange by market capitalization, alleging it failed to register
as a broker or exchange, and that it sold and offered unregistered securities to the
general public.
“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. Nigerian investors are hereby
warned that investing in crypto-assets is extremely risky and may result in
total loss of their investment.”
By:
Nana Appiah Acquaye
