Nigeria's regulatory authority for financial markets has issued an order to Binance, the world's largest cryptocurrency exchange, to cease its operations within the country. The Securities and Exchange Commission (SEC) stated that Binance Nigeria Limited, which had been engaging Nigerian investors through a website, was operating illegally and must immediately stop soliciting investments from Nigerian individuals.
In a statement dated June 9, the SEC emphasised that Binance was not registered or regulated, rendering its activities in violation of the law. At the time of reporting, Binance had not provided any comment regarding the regulator's directive.
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Notably, the SEC also took legal action against Binance and another major cryptocurrency exchange, Coinbase, accusing both platforms of violating regulatory rules.
In 2020, Nigeria's SEC introduced a series of regulations pertaining to digital assets, indicating the country's attempt to establish a balanced approach between a complete ban on crypto assets and unregulated usage. This came after the Central Bank of Nigeria banned banks and financial institutions from engaging in transactions involving digital currencies in 2021.
Nigeria, known for its youthful and tech-savvy population, has demonstrated a strong interest in cryptocurrencies. Many individuals in the country have turned to peer-to-peer trading platforms provided by crypto exchanges as a means to bypass the restrictions imposed by the traditional financial sector.
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