Nigeria Declares Binance ‘Illegal’ in the Country, Warns Public on Crypto

  • Nigeria’s SEC declares Binance’s operations illegal in the country, along with other unregistered crypto platforms.
  • The SEC issues a notice ordering all crypto platform providers to cease soliciting Nigerian citizens.
  • Nigeria’s CBDC Digital Naira faces adoption challenges amid the central bank’s efforts to promote its usage.

In a significant regulatory development, the Securities and Exchange Commission (SEC) of Nigeria has officially deemed the operations of Binance, the world’s largest cryptocurrency exchange, as “illegal” within the country.

The SEC issued a notice on July 28 ordering all crypto platform providers to cease soliciting Nigerian citizens, putting forth a clear stance on the use of cryptocurrencies in the country.

The notice specifically mentioned Binance’s website and reiterated that the company, including any platform through which Binance solicits investors, is neither registered nor regulated by the Commission. The Nigerian SEC warned that dealing with such entities and engaging in their solicitations involves significant risks, and investors do so at their own peril.

According to the official announcement:

“The Commission again reiterates that the activities of Binance, and any such other platform through which the company solicits investors, 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, making such solicitation is doing so at his/her own risk.”

This latest action against Binance comes as Nigeria has adopted a stringent approach towards cryptocurrencies. In the past, the SEC had already classified all cryptocurrencies as securities. Furthermore, the country has been evaluating crypto exchange applications for registration on a trial basis.

However, the full registration process has been put on hold until an agreement is reached between the SEC and the central bank. The central bank’s current stance prevents local financial institutions from engaging with crypto service providers.

Additionally, the Nigerian central bank has been pushing for the adoption of its CBDC Digital Naira, but it has faced challenges in gaining widespread acceptance among users.

As the situation continues to evolve, market participants and investors in Nigeria are urged to remain vigilant and adhere to the SEC’s warnings regarding crypto-assets, ensuring they understand the potential risks involved before making any investment decisions.

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