Nigerian Regulator Deems Binance's Local Operations as "Illicit"
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Loading... - Janet Usoro
- 12 Jun 2023
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Nigeria's regulatory authority has declared the operations of Binance, the world's largest cryptocurrency exchange, to be "illegitimate" within the country. The Securities and Exchange Commission (SEC) issued a statement on June 9, stating that Binance Nigeria Limited, which had been attracting Nigerian investors through its website, must cease all activities as it is not registered or subject to regulation, thereby violating the law. Binance has not yet responded to this directive.
In a separate development, the U.S. Securities and Exchange Commission recently filed lawsuits against both Binance and Coinbase, alleging that these platforms have violated regulatory guidelines.
In an effort to navigate the complex landscape of digital assets, Nigeria's SEC introduced a set of regulations last year. This move indicated the country's desire to strike a balance between an outright ban on cryptocurrencies and their unregulated use. Notably, the Central Bank of Nigeria had already prohibited banks and financial institutions from engaging in transactions involving digital currencies in 2021.
Despite these restrictions, Nigeria's young and tech-savvy population has enthusiastically embraced cryptocurrencies. Many individuals have turned to peer-to-peer trading on crypto exchanges as a means to circumvent the ban imposed by the traditional financial sector.
