The Securities and Exchange Commission (SEC) of Nigeria has cautioned the citizens of the jurisdiction to not trade or invest while using Binance (the biggest crypto exchange in terms of trading volume). The regulator, as included in its statutory mandate concerning investor protection, cautioned the regional investors regarding the hazards of trading with cryptocurrencies.
Nigerian SEC Cautions Citizens Against Using Binance
The agency asserted that the respective activity involves huge risk and may pave the way for substantial loss in the case of investments. As per the circular issued by the agency on the 28th of July, it pointed out that the activities of Binance within the jurisdiction are illegitimate because the firm is not licensed and even the regulator is not regulating it.
In the respective circular, the regulatory body noted that it again reiterates that the operations of the crypto exchange as well as any other such company via which it gathers investors does not have registration with the agency. It added that, as the regulator does not regulate the crypto exchange or its associates, hence the activities being performed by Binance in Nigerian jurisdiction are illegitimate.
Before this, the regulator entity issued an analogous circular back in June. In that document, the agency warned the residents regarding the trading operations on the web portal run by Binance Nigeria Limited. The Nigerian SEC also ordered the firm to stop gathering funds from regional investors in any case. On the other hand, the crypto exchange has disclosed that it does not possess or operate Binance Nigeria Limited.
This response was given by Changpeng Zhao (the chief executive officer of Binance) in June. While saying that, he categorically denied any affiliation of Binance with Binance Nigeria Limited. In addition to this, the CEO said that the agency should issue a warning for the scammer entity rather than Binance. Moreover, Zhao also cautioned the common masses not to believe all the things that they read, especially concerning the affiliation between the two firms.
The Real Operator of Binance Nigeria Limited Remains Disguised
Nonetheless, the respective development is still shocking for many as Binance Nigeria Limited keeps on claiming itself as a sub-branch of Binance. Furthermore, the firm incorporates the logo as well as the rest of the trademarks associated with Binance on its web portal. Although some confusion is still there concerning who operates Binance Nigeria Limited, the Nigerian SEC’s stance regarding digital assets is much clear.
The agency has kept on categorizing crypto assets as extremely risky investment vehicles. Nevertheless, the commission has remained ineffective in offering a clear agenda for the operations carried out by crypto exchanges within the country. Though it consistently promised to operate with the rest of the regulators in the jurisdiction for further guidance, no additional instructions have been issued by it up till now.
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