In short: Nigeria's Securities and Exchange Commission has declared Binance's local affiliate as operating illegally and has warned citizens of dealing with the exchange platform, which is "extremely risky". The regulator has asked Binance Nigeria Limited to immediately stop soliciting Nigerian investors and has cautioned that those who continue to trade with the platform would do so at their own risk. Stakeholders in Blockchain Technology Association of Nigeria has welcomed the SEC's decision, adding that it wants to help draft regulations to enable the local businesses to thrive in the digital asset market.
Our quick analysis:
The Nigerian Securities and Exchange Commission (SEC) has finally spoken up about Binance’s local affiliate, and it’s not good news for crypto enthusiasts. According to the regulator, Binance Nigeria is "neither registered nor regulated by the Commission and its operations in Nigeria are therefore illegal." As a result, the SEC has warned the public against dealing with Binance Nigeria and described crypto assets as an "extremely risky" investment option.
The timing of the Nigerian SEC's announcement is noteworthy, as it came less than 24 hours after Binance’s US affiliate suspended dollar deposits and withdrawals. It seems like Binance’s woes are far from over, as the US regulator has launched a lawsuit against the crypto exchange, seeking an emergency court injunction to freeze assets held by Binance U.S.
Although Binance Nigeria’s directive to stop soliciting Nigerian investors does not come as a surprise, the Nigerian blockchain and crypto association, the Stakeholders in Blockchain Technology Association of Nigeria (SIBAN), welcomed the decision. According to SIBAN, the regulator's move shows that the SEC is "watching the market and want[s] to ensure the market is properly regulated."
However, the SIBAN editorial team has since withdrawn their statement, which called on the SEC to work with local stakeholders when drafting regulations, enabling local businesses to thrive in the digital asset market. The team also requested that the SEC puts systems in place to support the national blockchain policy and expressed their willingness to work with the SEC "for the greater good of our nation."
At the moment, the Nigerian SEC has promised to provide updates on further "regulatory actions against Binance Nigeria and other similar platforms." For now, it's a waiting game for crypto enthusiasts in Nigeria and Binance's affiliates worldwide.
Image provided by Unsplash
Disclaimer: Our articles are NOT financial advice, and we are not financial advisors. Your investments are your own responsibility. Please do your own research and seek advice from a licensed financial advisor beforehand if needed.
Our quick analysis:
The Nigerian Securities and Exchange Commission (SEC) has finally spoken up about Binance’s local affiliate, and it’s not good news for crypto enthusiasts. According to the regulator, Binance Nigeria is "neither registered nor regulated by the Commission and its operations in Nigeria are therefore illegal." As a result, the SEC has warned the public against dealing with Binance Nigeria and described crypto assets as an "extremely risky" investment option.
The timing of the Nigerian SEC's announcement is noteworthy, as it came less than 24 hours after Binance’s US affiliate suspended dollar deposits and withdrawals. It seems like Binance’s woes are far from over, as the US regulator has launched a lawsuit against the crypto exchange, seeking an emergency court injunction to freeze assets held by Binance U.S.
Although Binance Nigeria’s directive to stop soliciting Nigerian investors does not come as a surprise, the Nigerian blockchain and crypto association, the Stakeholders in Blockchain Technology Association of Nigeria (SIBAN), welcomed the decision. According to SIBAN, the regulator's move shows that the SEC is "watching the market and want[s] to ensure the market is properly regulated."
However, the SIBAN editorial team has since withdrawn their statement, which called on the SEC to work with local stakeholders when drafting regulations, enabling local businesses to thrive in the digital asset market. The team also requested that the SEC puts systems in place to support the national blockchain policy and expressed their willingness to work with the SEC "for the greater good of our nation."
At the moment, the Nigerian SEC has promised to provide updates on further "regulatory actions against Binance Nigeria and other similar platforms." For now, it's a waiting game for crypto enthusiasts in Nigeria and Binance's affiliates worldwide.
Image provided by Unsplash
Disclaimer: Our articles are NOT financial advice, and we are not financial advisors. Your investments are your own responsibility. Please do your own research and seek advice from a licensed financial advisor beforehand if needed.
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