The world’s largest crypto exchange Binance faces one more regulatory roadblock and this time it’s in the African country of Nigeria. Last week, Nigeria’s Securities and Exchange Commission (SEC) called Binance’s operation illegal in the country.
The SEC issued a notice on Friday, July 28, ordering all crypto platform providers to cease soliciting Nigerian citizens. The SEC restated a previous warning about a company named Binance Nigeria Ltd., which Binance had previously clarified was not associated with them. However, in the recent notice, the SEC specifically mentioned the crypto exchange’s website.
The Nigerian SEC, as the regulatory authority responsible for investor protection, issues a warning to the public about the high level of risk associated with investing in crypto-assets. They emphasize that such investments may lead to the total loss of invested funds.
The Commission also advises the public to exercise caution when considering investments in crypto-assets. They should not consider products offered by entities, not registered or regulated by the Commission.
Nigeria has undertaken a tough stand on public cryptocurrencies Last year, the SEC made it clear that it considers all cryptocurrencies as securities. The country has been evaluating crypto exchange applications for registration on a trial basis.
Also, the Nigerian central bank has been pushing hard for the use of its CBDC Digital Naira. However, they have been struggling to find greater adoption among users.
While Binance faces strong rejection in Nigeria, it gets a roaring welcome in other crypto-friendly jurisdictions such as the UAE. Earlier today, Binance became the first exchange to secure an operational license in Dubai.