Binance Nigeria Limited ordered to stop operations by Nigeria’s SEC.

  • The Securities and Exchange Commission (SEC) of Nigeria has declared that Binance Nigeria Limited is operating illegally in Nigeria, as it is neither registered nor regulated.
  • This decision follows a lawsuit filed by the US SEC against Binance and its founder CZ.
  • The SEC of Nigeria had previously stated that it considers all crypto assets to be securities by default.

According to a circular released by the SEC on Friday, the Nigerian branch of Binance has been ordered to cease all operations immediately. The circular stated that Binance Nigeria Limited is not registered with or regulated by the Commission, and therefore its operations in Nigeria are illegal. The circular also warns Nigerian investors that investing in crypto-assets is highly risky and may result in a total loss of their investment.

Binance Nigeria is the second branch of Binance to be accused of operating unlicensed activities, after the US SEC sued Binance, its US affiliate, and its founder Changpeng Zhao. The US SEC has also requested the freezing of Binance.US’s assets and is currently seeking an alternative way to serve Changpeng Zhao with a court summons.

While this is the first action taken by Nigeria’s SEC against a cryptocurrency exchange platform, the SEC had previously stated that it considers all crypto assets to be securities by default. Bloomberg reported in May that Nigeria’s SEC was processing registration applications from crypto firms on a trial basis, but would not begin doing so formally until it had reached an agreement with the nation’s central bank. Currently, it is against the law for banks in Nigeria to provide services to cryptocurrency platforms.

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