• Nigeria’s Securities and Exchange Commission (SEC) has ordered Binance Nigeria Limited to cease operations as it is not registered or regulated by the SEC.
• This comes days after the US SEC sued Binance and its founder CZ for violating securities laws in the country.
• The Nigerian SEC previously stated that all crypto assets are considered to be securities by default.
Nigeria’s SEC Orders Binance Nigeria Limited to Stop Operations
Nigeria’s Securities and Exchange Commission (SEC) has issued a circular ordering Binance Nigeria Limited to immediately stop soliciting Nigerian investors in any form whatsoever, as it is neither registered nor regulated by the Commission. The move comes days after the US SEC sued Binance and its founder Changpeng Zhao for violating securities laws in the country.
Binance Under Siege
The US SEC has gone further to request for the assets of Binance.US to be frozen, while looking for an alternative way to serve Changpeng Zhao with court summons. This is not the first action taken against a cryptocurrency exchange platform, as Nigeria’s SEC had previously stated that all crypto assets are considered to be securities by default.
Warning To Nigerian Investors
The circular from Nigeria’s SEC warned members of the investing public not to deal with Binance Nigeria Limited at their own risk and cautioned Nigerians against investing in crypto-assets if the service provider/its platform is not registered or regulated by the Commission due to extreme risks which may result in total loss of their investment.
What Does This Mean For Crypto In Africa?
Although this order does not necessarily mean a ban on cryptocurrencies in Africa, it certainly indicates that regulators will continue cracking down on exchanges who fail to comply with regulations. It also serves as a warning that investors should exercise caution when dealing with unregulated platforms and should always do their due diligence before making any investments into cryptocurrencies or related financial products or services.
Conclusion
Cryptocurrencies have become increasingly popular across Africa over recent years, however it is important that investors make sure they understand all of the risks associated with investing in these digital assets before diving into any deals – especially those involving unregulated platforms such as Binance Nigeria Limited.
Neueste Kommentare