Crypto traders in panic as SEC bans Binance operation in Nigeria; declares it an illegal entity

• The Securities and Exchange Commission of Nigeria declares Binance's activities in Nigeria illegal.
• The commission warns citizens trading on Binance Nigeria Limited to trade at their own risk
• SEC urges caution when dealing with unregistered and unregulated platforms.

The Securities and Exchange Commission (SEC) of Nigeria has officially declared the operations of Binance in Nigeria to be illegal.

In a statement posted on its website, SEC cautioned Nigerian citizens that engaging in trading activities on Binance Nigeria Limited, a subsidiary of the global cryptocurrency exchange Binance, is done at their own risk.

SEC emphasized that Binance Nigeria's activities violate Nigerian laws, urging Nigerians to exercise caution when dealing with unregistered and unregulated platforms like Binance Nigeria.

According to SEC's statement,

“The Commission has become aware of the website operated by Binance Nigeria Limited, which solicits the Nigerian public to trade crypto assets on its various web and mobile-enabled platforms. Binance Nigeria Limited is not registered or regulated by the Commission, and its operations in Nigeria are therefore illegal. Any individual who chooses to engage with the entity does so at their own risk.”

As the regulatory body responsible for protecting investors, SEC advised Nigerians to be cautious when investing in crypto-assets and related financial products or services, especially if the service provider or platform is not registered or regulated by the Commission.

The statement also highlighted the high risks associated with investing in crypto-assets, emphasizing the possibility of a total loss of investment.

In light of the circular, Binance Nigeria Limited has been directed to immediately cease soliciting Nigerian investors through any means. SEC pledged to provide updates on further regulatory actions regarding the activities of Binance Nigeria Limited and similar platforms. The Commission also expressed its commitment to collaborating with other regulators in Nigeria to provide additional guidance on this matter.