Binance’s activities are “illegal” in Nigeria, according to a statement released by SEC.

Financial institutions in Nigeria are no longer permitted to conduct crypto transactions.

On Saturday, the Nigerian Securities and Exchange Commission called Binance, the biggest cryptocurrency exchange in the world, “illegal” to operate in the country. Binance’s legal woes stem from a complaint filed by the US Securities and Exchange Commission against the cryptocurrency exchange and several affiliated companies.

The Securities and Exchange Commission of Nigeria has ordered Binance to end its activities in the nation after labeling Binance Nigeria Limited an “illegal” exchange.

Yet Another Blow

Binance’s activities are “illegal” in Nigeria, according to a statement released by the Nigeria SEC, since the company is not registered with or controlled by the agency. The agency also threatened regulatory action against cryptocurrency exchanges and ordered Binance to prevent Nigerians from investing on the platform.

The authorities stated:

“Binance Nigeria Limited is neither registered nor regulated by the Commission and its operations in Nigeria are therefore illegal. Any member of the investing public dealing with the entity is doing so at his/her own risk.”

Financial institutions in Nigeria are no longer permitted to conduct crypto transactions. Nigeria, however, is still among the leading nations in terms of crypto adoption, and its peer-to-peer trading platforms handle more crypto transactions than any other country outside the United States.

Due to the significant dangers associated with crypto, the SEC has issued a warning to Nigerians to avoid investing in crypto assets and crypto asset-related financial goods and services. The action occurred after Nigeria’s Finance Act 2023, which levies a 10% capital gains tax on cryptocurrency and other digital assets, was enacted.

Binance, Binance.US, and Changpeng Zhao (CZ) were hit with 13 allegations by the US Securities and Exchange Commission on Monday. As a result, many companies were afraid to do business with Binance U.S., and the cryptocurrency industry was thrown into chaos.

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Filed under: Bitcoin - @ June 10, 2023 4:20 pm