Nigeria’s Securities and Exchange Commission (SEC) has issued an order for Binance to cease operations in the country. According to Reuters, the SEC instructed “Binance Nigeria Limited to immediately stop soliciting Nigerian investors in any form,” citing the exchange’s lack of registration and regulation within the country.
In response to the directive, a spokesperson for Binance denied any affiliation with the mentioned entity in the SEC circular and expressed the company’s intention to seek clarity from the Nigerian SEC. The spokesperson also emphasized Binance’s commitment to working cooperatively with the regulator on determining the next steps, media reports said.
Binance has established a significant presence in Nigeria, boasting a Telegram community of over 64,000 members and a dedicated announcements channel for the region. The exchange’s popularity among Nigerian investors has been fueled by its wide range of cryptocurrency offerings and user-friendly platform.
Earlier in May, Nigeria’s SEC published comprehensive regulations spanning 54 pages specifically designed for digital assets. These regulations outlined guidelines for issuing digital assets and classified them as securities, subject to SEC oversight. The rules also encompassed registration requirements for digital asset offerings and custodians, as well as regulations governing digital asset exchanges.
The SEC’s decision to order Binance’s cessation of operations in Nigeria highlights the regulator’s commitment to enforcing its regulatory framework for digital assets and ensuring investor protection within the country’s cryptocurrency market. Binance’s next course of action will likely depend on the outcome of its discussions with the SEC, as the company aims to clarify its standing and work collaboratively with the regulator to address any concerns.
