Binance ordered to stop operations in Nigeria due to regulatory issues.
Binance, the world’s largest cryptocurrency exchange by trading volume, has been ordered to stop operating in Nigeria by the country’s Securities and Exchange Commission (SEC).
The regulator recently stated that Binance’s operations in the West African nation were “illegal,” as the cryptocurrency exchange was neither registered nor regulated by the commission.
The commission warned that “any member of the investing public dealing with the entity is doing so at his or her own risk.”
In 2021, Nigeria’s central bank had banned banks and financial institutions from facilitating transactions in digital currencies.
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Despite the ban, residents in Africa’s most populous country still make up the largest volume of digital token transactions done on peer-to-peer trading platforms outside of the United States.
The Nigerian SEC warned investors that investing in crypto-assets is “extremely risky and may result in total loss of investment.”
The regulator ordered Binance to stop soliciting investments from Nigerians and threatened to take further regulatory action against the platform and other similar exchanges operating in the country.
Last year, Nigeria’s SEC published a set of regulations for digital assets, indicating the country’s attempt to find a middle ground between an outright ban on crypto assets and their unregulated use.
The US SEC has recently launched lawsuits against Binance, accusing the firm of illegally operating a securities exchange. The SEC revealed 13 charges against the platform, including operating an unregistered exchange and offering unregistered securities to the public, including its BNB token and BUSD stablecoin. The agency also accused Binance of breaking the law by failing to register as a broker or exchange. Despite the increasing regulatory scrutiny, Binance has not seen large outflows.