Nigeria’s Financial Regulatory Authority has ordered Binance to stop its services in the country saying the exchange is neither registered nor regulated. In a circular issued on June 9, Nigeria’s Securities and Exchange Commission (SEC) described the operations of the stock exchange in the West African country as illegal.
“Binance Nigeria Limited is hereby directed to cease immediately soliciting Nigerian investors in any manner whatsoever,” pursuant to directives from the SEC, Nigeria. “Any member of the investing public doing business with the entity does so at their own risk.”
The Nigeria SEC circular came about a week after Binance was accused by the US SEC along with its CEO and co-founder, Changpeng Zhao, of operating an illegal trading platform, offering unregistered securities, and siphoning customer funds. The SEC also sought a court order to freeze assets owned by Binance.
“As the regulator with the legal mandate for investor protection, the Commission urges Nigerians to exercise caution in investing in crypto assets and crypto-asset-related financial products and services if the service provider or its platform is not registered or regulated by the Commission,” the circular added.
Although it is not yet clear what action the Nigerian Markets Watch will take against Binance Nigeria Limited, the commission revealed that further regulatory actions will be made available related to the exchange’s activities.
Nigeria is moving to protect investors
Amid growing cryptocurrency adoption in Africa’s most populous country, the Securities and Exchange Commission of Nigeria is taking precautions to protect investors. The commission said in a report published by Bloomberg in May that it is considering allowing token offerings backed by equities, debt and property, but not crypto, on licensed digital asset exchanges.
However, an attempt by the Central Bank of Nigeria (CBN) to push for the adoption of a central bank digital currency (e-Naira), including the use of cash registers, was met with street protests in March. CBN issued guidelines for e-Naira in 2021 with the aim of making it legal tender if successful.
Hong Kong welcomes Coinbase
Meanwhile, Coinbase, another major exchange also facing regulatory pressure in the United States, has received an invitation from the Hong Kong regulator to start operations in the region, according to a post by Juni Ng, a Legco member in Hong Kong.
This is despite the exchange’s lawsuit filed by the US Securities and Exchange Commission alleging operating an illegal trading platform and dealing in unregistered securities. The SEC has also accused Coinbase of running a digital asset stake as a service program without the required license.
Here I extend an invitation to welcome all global virtual asset trading operators including @tweet To come to Hong Kong to implement the official trading platforms and other development plans. Please feel free to contact me and I am happy to be of any assistance. pic.twitter.com/bcIi1IjMlc
– Johnny Ng 吴杰 庄 (Johnny_nkc) June 10, 2023
Nigeria’s Financial Regulatory Authority has ordered Binance to stop its services in the country saying the exchange is neither registered nor regulated. In a circular issued on June 9, Nigeria’s Securities and Exchange Commission (SEC) described the operations of the stock exchange in the West African country as illegal.
“Binance Nigeria Limited is hereby directed to cease immediately soliciting Nigerian investors in any manner whatsoever,” pursuant to directives from the SEC, Nigeria. “Any member of the investing public doing business with the entity does so at their own risk.”
The Nigeria SEC circular came nearly a week after Binance was accused by the US SEC along with its CEO and co-founder, Changpeng Zhao, of operating an illegal trading platform, offering unregistered securities, and siphoning customer funds. The US Securities and Exchange Commission also sought a court order to freeze the assets owned by Binance.
“As the regulator with the legal mandate for investor protection, the Commission urges Nigerians to exercise caution in investing in crypto assets and crypto-asset-related financial products and services if the service provider or its platform is not registered or regulated by the Commission,” the circular added.
Although it is not yet clear what action the Nigerian Markets Watch will take against Binance Nigeria Limited, the commission revealed that further regulatory actions will be made available related to the exchange’s activities.
Nigeria is moving to protect investors
Amid growing cryptocurrency adoption in Africa’s most populous country, the Securities and Exchange Commission of Nigeria is taking precautions to protect investors. The commission said in a report published by Bloomberg in May that it is considering allowing token offerings backed by equities, debt and property, but not crypto, on licensed digital asset exchanges.
However, an attempt by the Central Bank of Nigeria (CBN) to push for the adoption of a central bank digital currency (e-Naira), including the use of cash registers, was met with street protests in March. CBN issued guidelines for e-Naira in 2021 with the aim of making it legal tender if successful.
Hong Kong welcomes Coinbase
Meanwhile, Coinbase, another major exchange also facing regulatory pressure in the United States, has received an invitation from the Hong Kong regulator to start operations in the region, according to a post by Juni Ng, a Legco member in Hong Kong.
This is despite the exchange’s lawsuit filed by the US Securities and Exchange Commission alleging operating an illegal trading platform and dealing in unregistered securities. Coinbase has also been accused by the Securities and Exchange Commission of operating digital assets as a service program without the required license.
Here I extend an invitation to welcome all global virtual asset trading operators including @tweet To come to Hong Kong to implement the official trading platforms and other development plans. Please feel free to contact me and I am happy to be of any assistance. pic.twitter.com/bcIi1IjMlc
– Johnny Ng 吴杰 庄 (Johnny_nkc) June 10, 2023