Binance, one of the world’s largest cryptocurrency exchanges, has issued a cease and desist notice to the fraudulent entity known as Binance Nigeria Limited, according to an announcement made by CEO Changpeng Zhao on Sunday. This action comes in response to a circular released by the Nigerian Securities and Exchange Commission (SEC) on June 9, which deemed Binance Nigeria Limited illegal in the country.
However, Binance promptly responded through a spokesperson, denying any affiliation with the mentioned entity in the SEC’s circular. The spokesperson reiterated Binance’s commitment to seeking clarity from the Nigerian SEC and expressed the company’s willingness to cooperate on the next steps. It is worth noting that Binance is concurrently facing legal action from the United States Securities and Exchange Commission (SEC).
In the United States, the SEC has filed 13 charges against Binance entities and CEO Changpeng Zhao. Some of these charges include allegations of operating as an unregistered exchange, broker-dealer, and clearing agency, as well as misrepresenting trading controls. The U.S. SEC has pointed out that despite earning $11.6 billion from U.S. customers, Binance and Zhao failed to register as required by regulations.
A significant development in the ongoing legal battle occurred on June 17, as U.S. Judge Amy Berman Jackson approved an agreement between Binance.US, Binance, and the U.S. SEC. This agreement led to the dismissal of a temporary restraining order previously imposed to freeze all Binance.US assets.
Binance, which serves users in approximately 100 countries, established its headquarters in George Town, Cayman Islands, in 2017. In 2019, the company also registered a subsidiary in Mahe, Seychelles. These international operations have provided Binance with a global presence but have also subjected it to varying regulatory frameworks and scrutiny from multiple jurisdictions.
The recent developments with Binance underscore the challenges faced by cryptocurrency exchanges in navigating regulatory landscapes worldwide. As the cryptocurrency industry continues to evolve, regulatory bodies are striving to establish guidelines and enforce compliance to protect investors and maintain market integrity. Binance’s interactions with the Nigerian SEC and the U.S. SEC exemplify the growing focus on ensuring transparency and regulatory compliance within the crypto ecosystem.
Binance remains a prominent player in the cryptocurrency space, and its response to these regulatory challenges will be closely watched by industry participants and observers. The outcome of the legal proceedings and Binance’s efforts to address the concerns raised by regulators in Nigeria and the United States will likely have significant implications for the future of the exchange and the broader cryptocurrency industry as a whole.
