• Nigerian Securities and Exchange Commission (SEC) issued a warning against Binance, the world’s largest crypto exchange, for its operations in the country being illegal.
• The SEC warned investors against using Binance as it is not a regulated entity in Nigeria.
• In June, the regulator mistakenly identified a domain squatter as being affiliated with Binance instead of the international exchange.
Nigerian SEC Issues Warning Against Unregulated Crypto Exchange
The Nigerian Securities and Exchange Commission has issued a stern warning to investors against using Binance, the world’s largest cryptocurrency exchange, for its operations in Nigeria due to them being unregulated. The SEC warned that any activities within the country are “illegal” and cautioned crypto users from utilizing this platform.
Domain Squatter Mistakenly Identified by SEC
In June, the regulator had mistakenly identified a domain squatter as being affiliated with Binance instead of the international exchange. Contrary to initial claims made by the SEC, there were never any websites or mobile apps offering trading in crypto assets under the name Binance Nigeria Limite.
SEC Seeking Further Regulatory Action
The Nigerian SEC is seeking further regulatory action regarding operations of such operators and related platforms. It is also working with other regulators in Nigeria to provide further guidance on this matter.
Binance Facing Regulatory Trouble Around Globe
Binance has been facing numerous regulatory issues across multiple countries including lawsuits from US regulators and increased challenges in Europe. The firm now finds itself at loggerheads with African regulators as well following this latest warning from Nigeria’s regulatory body.
It appears that despite their best efforts to stay compliant with regulations around the globe, Binance continues to find itself embroiled in legal troubles due to its unregulated status within certain countries like Nigeria which can be damaging for both investors and exchanges alike if not addressed correctly or promptly enough.