SNEAK PEEK
- Nigeria’s SEC declares Binance’s operations illegal due to lack of registration and regulation.
- Binance clarifies no affiliation with Binance Nigeria Ltd amid regulatory concerns.
- SEC warns all crypto platform providers to avoid soliciting Nigerian citizens.
Nigeria’s Securities and Exchange Commission (SEC) has taken a firm stance against cryptocurrency exchange Binance, labeling its operations within the country as illegal due to the company’s lack of registration and regulation under the commission. The SEC’s notice emphasized that all crypto platform providers must refrain from soliciting Nigerian citizens.
This warning comes as a reaffirmation of an earlier caution issued on June 9, which specifically mentioned a company named Binance Nigeria Ltd. Binance, however, clarified that it was not associated with this entity. The SEC’s latest notice cited concerns with Binance’s website as part of the reason for its actions.
It’s crucial to note that the SEC has previously classified all cryptocurrencies as securities, and Nigeria has been in the process of reviewing crypto exchange applications on a trial basis. However, the final registration approval is contingent on reaching an agreement with the central bank, which has previously imposed restrictions on local financial institutions engaging with crypto service providers.
In a broader context, the SEC has urged the public to exercise caution when investing in crypto assets or dealing with entities that lack registration or regulation by the commission. The circular specifically directed platform providers involved in such solicitations to immediately cease targeting Nigerian investors.
Potential investors in Nigeria’s crypto market should remain vigilant about regulatory developments and carefully verify the legitimacy of the platforms they interact with to avoid potential risks.
Meanwhile, Binance has made a significant move on the international front. On Monday, the company announced that it had been granted a license to operate in Dubai. This comes after receiving a Minimal Viable Product (MVP) license from Dubai’s Virtual Assets Regulatory Authority (VARA) in September 2022.
The MVP license had allowed Binance to establish a domestic bank account for holding clients’ funds locally, facilitate crypto exchange operations, and offer payment and custody services. Now, having met all necessary pre-conditions, Binance has successfully secured the official license to continue its operations in Dubai.
As the crypto landscape evolves globally, investors must stay informed about regulatory developments and licenses obtained by crypto service providers to make well-informed decisions. The developments in Nigeria and Dubai further highlight the need for regulatory compliance and transparency in the rapidly expanding cryptocurrency industry.
