Nigeria’s SEC Shuts Down Binance Nigeria, Warns of Crypto Risks

• Nigeria’s Securities and Exchange Commission (SEC) has issued a circular ordering Binance Nigeria Limited to stop all operations immediately as it is neither registered nor regulated in the country.
• This comes after the US SEC sued Binance, its US affiliate, and its founder Changpeng Zhao for violating securities laws.
• Nigerian investors are warned that investing in crypto-assets is extremely risky and may result in a total loss of their investment.

Nigeria’s SEC Orders Binance Nigeria Limited to Stop Operations

Nigeria’s Securities and Exchange Commission (SEC) has issued an order against Binance Nigeria Limited, a crypto exchange platform, to stop all operations immediately for being neither registered nor regulated in the country. This follows the recent lawsuit by the US SEC against Binance, its US affiliate, and its founder Changpeng Zhao for violating securities laws.

Unlawful Operations of Binance Nigeria Limited

The Friday circular from Nigeria’s SEC stated that any member of the investing public dealing with Binance Nigeria Limited was doing so at their own risk as it was operating illegally. The regulator also warned investors not to invest in crypto-assets or related financial products if they were not registered or regulated by the Commission.

US SEC Lawsuit Against Binance

The US Securities and Exchange Commission (SEC) had previously filed a lawsuit against Binance, its US affiliate, and its founder Changpeng Zhao on Monday accusing them of violating securities laws in the country. The regulator had further requested for freezing of assets belonging to Binance.US while looking for alternative ways to serve Changpeng Zhao with court papers.

Risk Involved With Crypto-Assets Investment

Nigerian investors have been warned by Nigerian authorities that investing in crypto-assets is extremely risky and may result in total loss of their investment due to lack of regulation with these assets.

Conclusion

Binance’s Nigerian branch has been told to cease operations immediately which marks first action taken by Nigerian authorities against a cryptocurrency exchange platform despite previous warnings about risks involved with crypto investments due to lack of regulation .