The Securities and Exchange Commission (SEC) of Nigeria has declared that the activities of the cryptocurrency exchange Binance are illegal within the country. The SEC issued a notice on Friday, specifically referring to the crypto exchange’s website, stating that Binance’s operations are neither registered nor regulated by the commission. This declaration reiterates a warning issued by the SEC on June 9, which referred to a company called Binance Nigeria Ltd. Binance had clarified at the time that the company was not affiliated with it.
SEC orders crypto platforms to cease solicitations
In addition to declaring Binance’s activities illegal, the SEC ordered all crypto platform providers to cease soliciting Nigerian citizens. This directive applies to all platforms affiliated with cryptocurrencies. Last year, The SEC stated that it views all cryptocurrencies as securities. While the country has been processing applications from crypto exchanges to register on a trial basis, it will not complete registration until an agreement is reached with the central bank. The central bank has blocked local financial institutions from interacting with crypto service providers.
Public cautioned against investing in crypto assets
The SEC also warned the public to be cautious when investing in crypto assets and other products offered or operated by entities not registered or regulated by the Commission. The circular issued by the SEC directed all platform providers making solicitations to stop soliciting Nigerian investors in any form immediately.
The SEC’s declaration comes amid a complex regulatory environment for cryptocurrencies in Nigeria. The country has been processing crypto exchange applications for registration on a trial basis. However, full registration will not be completed until an agreement is reached with the central bank.
Subsequently, Binance has faced challenges with regulations in Europe and the US, although Binance.US operates in the US. In June, French authorities visited Binance’s premises amid reports of an investigation. Binance clarified that this was part of their regulatory obligations as a financial institution and that they had cooperated with law enforcement. Binance also recently announced its decision to withdraw from the Netherlands and Cyprus. On a positive note, Binance has made progress towards obtaining full approval from Dubai’s regulatory agency, with the Virtual Asset Regulatory Authority granting them a minimum viable product license. Binance only needs to secure a full market product license to offer more authorized services in Dubai.
Back in June, French authorities visited Binance on-site as reports claimed that the global exchange was facing an investigation by French authorities. The global exchange, however, said that the on-site visit was “part of regulatory obligations to which all financial institutions must adhere.” It added that it spent “considerable time” and resources cooperating with “law enforcement globally.”
In June, Binance also announced its plans to exit the Netherlands and Cyprus.
It’s not all bad news for Binance, however, as it did announce that it was one step closer to receiving full approval from Dubai’s regulatory agency. The Virtual Asset Regulatory Authority issued Binance a minimum viable product license on Monday, meaning that it will only need to receive a full market product license to offer more authorized services.
