Key Insights
- Nigerian SEC warns against using Binance, citing lack of license and illegal operation.
- Previous circular targeted fraudulent Binance Nigeria entity, prompting Binance to issue a cease and desist notice.
- Nigeria maintains a cautious stance on crypto despite promoting its CBDC, introduces 10% tax on digital asset gains.
The Nigerian Securities and Exchange Commission (SEC) has issued a stern warning to local investors against using Binance, one of the world’s largest crypto exchanges.
The SEC emphasizes that Binance lacks the necessary license to operate in the country, making its activities illegal.
It cautions the public about the high risks involved and the potential for total loss of investments, urging investors to trade on Binance at their own risk.
This recent warning comes after a previous circular was issued against a fraudulent company posing as Binance Nigeria. The SEC is vigilant in safeguarding investors from such deceptive entities. Binance responded to the situation by issuing a cease and desist notice to Binance Nigeria.
Despite promoting its central bank digital currency (CBDC), known as eNaira, Nigeria remains cautious about the crypto industry. The adoption rates of eNaira have been below expectations since its launch in 2021, prompting the central bank to explore methods to boost usage.
Recently, the country introduced a 10% tax on gains from the disposal of digital assets, including cryptocurrencies, which some local stakeholders consider premature.
The SEC’s message is clear: unregistered platforms like Binance must immediately halt their services in the country.
Read also: How Binance Is Trying to Outwit EU Regulators and Break into the UK Market
This regulatory stance reflects Nigeria’s efforts to maintain control and protect its investors in the evolving world of cryptocurrencies.
MarketsXplora has reached out to Binance for further commentary on the SEC notice, and the situation continues to develop.