Binance, the largest cryptocurrency exchange in the world, has been told to cease operations in Nigeria after the country’s markets regulator declared that a local arm of the company that solicited Nigerian investors online was operating illegally.
According to the Nigerian authority, Binance Nigeria Limited is operating illegally in the nation.
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The Securities and Exchange Commission (SEC) issued a statement saying that “Binance Nigeria Limited is hereby directed to immediately cease soliciting Nigerian investors in any form whatsoever.”
SEC stated that because the company was neither licensed nor incorporated, its operations were illegal.
Binance, claims they have no connection to the firm that was the subject of a circular issued by the Nigerian Securities and Exchange Commission (SEC) last week.
The spokesperson for Binance said, “We are aware of the circular, however, the entity mentioned in the circular is not affiliated with us. “We are therefore seeking clarity from the Nigerian SEC and remain committed to working with them cooperatively on the next steps.”
The SEC in Nigeria issued a warning four days after the SEC in the United States launched legal action against Binance.
The Nigerian SEC said in a statement published on its website that “Binance Nigeria Limited 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 is doing so at his/her own risk.”
The authority also warned Nigerians to be mindful of investing in unregistered or unregulated crypto-assets or crypto-related businesses.