The Securities and Exchange Commission (SEC) has warned Nigerians against doing business with Binance Nigeria, saying that they were doing so at their own risk.
According to a circular by the Commission at the weekend, the activities of Binance in the country was illegal.
Binance Nigeria Limited is a subsidiary of the well-known global cryptocurrency exchange, Binance.
According to the circular, “The attention of the Securities and Exchange Commission (the Commission) has been drawn to the website operated by Binance Nigeria Limited, soliciting the Nigerian public to trade crypto assets on its various web and mobile-enabled platforms.
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”.
The SEC further stated that “as the regulator with the statutory mandate of investor protection, the Commission urges Nigerians to be wary of investing in crypto-assets, and crypto-asset related financial products and services if the service provider/its platform is not registered or regulated by the Commission.
The Commission, therefore, warned Nigerian investors that investing in crypto-assets is extremely risky and may result in a total loss of their investments.
“By this circular, Binance Nigeria Limited is hereby directed to immediately stop soliciting Nigerian investors in any form whatsoever.
“The Commission shall provide updates on further regulatory actions with respect to the activities of Binance Nigeria Limited, and other similar platforms and shall work with other regulators in Nigeria to provide further guidance on this matter” the SEC added.
