The Nigerian Securities and Exchange Commission (SEC) has cautioned investors in the country against using Binance, the largest cryptocurrency exchange in the world, stating its operation is illegal.
The SEC issued a warning against investing with Binance on July 28. The agency maintains that the platform lacks a license to operate in the country and that its operation is unlawful. In addition, it reminds the public of the elevated level of risk and the potential for total investment loss:
“Any member of the investing public dealing with the entity, making such solicitation is doing so at his/her own risk.”
In June, the SEC issued a circular restricting Binance Nigeria’s operations. The circular contained the same warning for investors and platforms as just released.
However, Binance Nigeria was a fraudulent organization with no connection to Binance. In response, Binance issued Binance Nigeria a cease and desist order.
Despite actively promoting its central bank’s digital currency (CBDC), Nigeria is cautious about the crypto industry. However, since its introduction in 2021, adoption rates of the eNaira have lagged behind projections, prompting the central bank to consider various strategies to increase usage.
In July, the CBDC system was upgraded with near-field communication technology to improve contactless payments.
The country imposed a 10% tax on gains from the sale of digital assets, including cryptocurrencies, beginning in May 2023. Local stakeholders referred to the measure as “premature.”
The SEC demands that Binance and other unregistered platforms immediately cease operations in the United States.
