The Nigerian Securities and Exchange Commission (Nigeria SEC) has outlawed the activities of digital asset exchange Binance Holdings Ltd in the country, days after the US SEC filed a lawsuit against the firm.
Nigeria SEC Declares Binance Nigeria Operating In The Country Illegal
The Nigerian SEC said in a statement published on its website late Friday that Binance Nigeria Limited, the cryptocurrency platform's branch in the country, is neither registered nor regulated by the commission, and therefore its activities are "illegal".
The commission warned that "it is its own responsibility for any member of the investing public to do business with this organization".
According to Paxful, an exchange that closed in April, although credit institutions in Nigeria are prohibited from conducting cryptocurrency transactions, residents in the country account for the largest volume of digital token transactions made on peer-to-peer trading platforms outside the US.
The Nigerian SEC said earlier this year that it is considering allowing tokenized money offerings on licensed digital exchanges that are backed by assets such as equity, debt, property, but are "non-crypto".
The Nigerian SEC said in its statement:
“Nigerian investors are warned that investing in crypto assets is extremely risky and can result in a complete loss of their investment.”
The Nigerian SEC, which ordered Binance to immediately stop soliciting investments from Nigerians, added that it could take further regulatory action against the platform and other similar exchanges operating in the country.
Earlier this week, the US SEC filed a lawsuit against Coinbase and Binance US, the two largest cryptocurrency exchanges operating in the country.
*Not investment advice.
