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It’s been a rough week for cryptocurrency exchange Binance. On June 9, the Securities Authority of Nigeria reportedly Accept The exchange became illegal just days after Binance was sued by the US Securities and Exchange Commission.
“Binance Nigeria Limited is hereby directed to cease soliciting Nigerian investors in any form immediately,” Nigeria’s Securities and Exchange Commission (SEC) said in a statement. saw by Bloomberg.
The regulator also noted that Binance is neither registered nor regulated in the country, making its operations illegal. “Any member of public investment investing with the entity is doing so at his or her own risk,” the commission said.
Allegedly, Binance US put customer funds at risk. Anyone with proof must be doing a lot of good to millions of people.
— son of timothy (@ObiUcheUzoije) June 7, 2023
The blow comes days after Binance was sued by the US authorities. The US SEC brought 13 charges against Binance on June 5, including unregistered offers and sales of securities, failure to register as an exchange or broker, and lack of funds. The company said it provided all information required by regulators and looks forward to “defending itself in court”.
Binance is a popular crypto exchange in Nigeria. It is one of the most prominent crypto hubs in the region and the most populous country in Africa. A study by Chainalysis shows that the Middle East and North Africa region is leading worldwide crypto adoption, with users receiving $566 billion in cryptocurrencies between July 2021 and June 2022, up 48% from the previous year is more.
The ban follows recent regulatory developments within the local crypto ecosystem. On 28 May, former President Muhammadu Buhari signed the Finance Act, introducing a 10% tax on profits from digital assets. The newly elected Nigerian President, Bola Tinubu recently issued a manifesto suggesting amendments to the Nigerian SEC regulations on digital assets to make them more business-friendly.
The Central Bank of Nigeria does not recognize cryptocurrencies as legal tender, and commercial banks are banned from engaging in crypto transactions in the country from February 2021.
Cointelegraph reached out to Binance but did not receive an immediate response.
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