Nigeria’s SEC warns against trading on Binance

The Commission insists that the platform doesn’t have a license to work in the country and hence its operation is illegal.

The Securities and Exchange Commission of Nigeria (SEC) issued a warning for local investors against using one of the world’s largest crypto exchanges, Binance. It refers to the previous circular, issued against the fraudulent company, which had been illegally using Binance brand. 

On July 28, the SEC issued a warning against investing with Binance. The Commission insists that the platform doesn’t have a license to work in the country and hence its operation is illegal. It also reminds the public about a high level of risk and potential total loss of investments:

“Any member of the investing public dealing with the entity, making such solicitation is doing so at his/her own risk.” 

Earlier, in June, the Commission published a circular, limiting the activities of Binance Nigeria. Essentially, the circular represented the same kind of warning for investors and platform, as the one it has published now. However, Binance Nigeria was a fraudulent entity without any real affiliation with Binance. Back then, Binance representatives issued a cease and desist notice to Binance Nigeria Limited.

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Nigeria holds a cautious stance on crypto industry, at the same time promoting its central bank digital currency (CBDC). However, since its launch in 2021, adoption rates of eNaira have fallen below expectations, prompting the central bank to explore several options to drive usage. In July, it upgraded the CBDC system with Near Field Communication (NFC) technology, enhancing the contactless payments.

From May 2023, the country introduced a 10% tax on gains from the disposal of digital assets, including cryptocurrencies. Local stakeholders called the measure “premature”.

Cointelegraph reached out to Binance for further commentaries on the SEC notice.

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As to Binance and other unregistered platforms, the SEC demands them to immediately stop the soliciting of its services in the country.