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Nigerian Regulators Orders Binance To Halt Operations

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Another great challenge hit Binance as the Nigerian SEC orders the crypto exchange to halt its activities in the country.

Last year, the Nigerian Securities and Exchange Commission released a set of rules for digital assets in its quest for seeking a balance between a ban on crypto assets and their unregulated use.

READ ALSO: Ripple Should Give Former SEC Chairman a Heartfelt Gratitude

The year before that, the central bank of Nigeria banned banks as well as financial institutions from facilitating or dealing in transactions in digital currencies.

The Nigerian SEC said that it regards all crypto assets as securities by default.

This seems to be the first move by the regulator against a big exchange platform.

According to reports from Bloomberg, Nigeria’s SEC was processing crypto companies’ applications for registration.

However, the process is still on a trial basis and they haven’t started any official registration yet until it reaches an agreement with the central bank of Nigeria.

More Details of the Story

According to a circular last Friday,

 “Binance Nigeria Limited is not registered or regulated by the Nigerian SEC.

As a result, its transactions are regarded illegal”.

This order from Nigeria came after the lawsuit by the United States securities watchdog against the internationally recognized largest crypto exchange by market cap last Monday.

Allegedly, the crypto exchange failed to register as an exchange or broker but sold offered unregistered securities to the public at large.

The regulators explained that since Binance isn’t registered or regulated in the country, “any member of the investing public who transacts business with the exchange is doing so at his/her own risk” says the commission.

As per the statement of the Nigeria Securities and Exchange Commission, the local branch of Binance was courting investors illegally through a website because the exchange isn’t registered or regulated.

According to the statement which was released on June 9, “Binance Nigeria Limited is hereby demanded to immediately halt soliciting Nigerian investors in any way whatsoever.”

How Is Binance Handling the Matter?

This news is an additional blow to Binance especially, as it was sued by the United States SEC last week.

According to the US regulators, Binance has mixed “billions of dollars” in customer funds and sent them secretly to a different company which is controlled by Changpeng Zhao its founder and CEO.

As a result, Binance Holding, Zhao, as well as 2 other Binance-related companies are facing 13 civil count charges.

Meanwhile, the company says that it has delivered all the necessary information required from them to the regulators and is waiting for the chance to “defend them in the court of law”.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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