- The regulator has demanded that Binance exchange cease operations in the country.
- This announcement came after Binance US was sued by the US SEC for operating an illegal securities exchange.
- The country’s regulator explicitly stated that Binance exchange violated laws and advised those trading on unregistered platforms to be cautious.
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Following the SEC’s lawsuit against Binance exchange and founder CZ in the US, another SEC in a different country has declared Binance exchange illegal.
Binance Operations Declared Illegal
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The Nigerian Securities and Exchange Commission (SEC) issued a statement emphasizing that Binance Nigeria was not registered or regulated by the SEC and that Binance Nigeria’s operations in Nigeria were illegal. Additionally, the regulator demanded that the exchange cease operations in the country.
According to a statement on its website, the SEC alleged that Binance Nigeria Limited, a subsidiary of the well-known global cryptocurrency exchange Binance, actively promoted its web and mobile platforms to the Nigerian public.
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However, the SEC explicitly stated that the company’s operations violated Nigerian laws and advised Nigerians to be cautious when dealing with unregistered and unregulated platforms like Binance Nigeria.
This announcement came after Binance US, a subsidiary of the global exchange, was sued by the US SEC for operating an illegal securities exchange. It also came after Nigeria implemented a 10% tax on digital assets in its new Finance Act for 2023.
What Does This Mean?
The commission pledged to provide updates on its progress in addressing this issue and to collaborate with other regulatory agencies within the country to create comprehensive guidelines and regulations for the cryptocurrency market.
- The SEC aims to protect the interests of Nigerian investors and provide access to transparent and regulated investment opportunities.
- By taking strong measures against unregistered platforms, the SEC hopes to strengthen confidence in the cryptocurrency market and protect unknowing investors from fraud regulations.
- While cryptocurrencies offer many potential benefits, such as financial inclusion and technological innovation, regulatory oversight is necessary to protect investors and ensure the integrity of the market.
- Many other countries, like Nigeria, are in the early stages of creating comprehensive regulations for the cryptocurrency market.
As Nigeria continues to develop its regulatory framework for the cryptocurrency market, investors should follow updates from the SEC and other regulatory agencies. By educating themselves and researching reliable and regulated platforms, Nigerian investors can move more confidently in the cryptocurrency market and protect their earned capital.