Binance Asked to Shut Down Operations in Nigeria by Regulator

Summary:
Binance, the largest cryptocurrency exchange in the world, was deemed "illegal" to operate in Nigeria by the Nigerian Securities and Exchange Commission on Saturday, demanding that Binance cease operations in the country. The crypto sector as a whole is under pressure until a clear regulatory framework is established.

Binance, the largest cryptocurrency exchange in the world, was deemed “illegal” to operate in Nigeria by the Nigerian Securities and Exchange Commission (SEC) on Saturday. The United States Securities and Exchange Commission has launched a lawsuit against Binance and many of its related entities.

Moreover, the SEC designated Binance Nigeria Limited a “illegal” exchange. The Securities and Exchange Commission of Nigeria demanded that Binance cease operations in the country.

Cease Order by Nigeria SEC

Since Binance is not registered with nor under the authority of the Nigeria SEC. The agency has declared the company’s operations to be “illegal” in the country. Binance was directed by the government to stop Nigerians from making cryptocurrency investments. And the agency also warned regulatory action against cryptocurrency exchanges.

The announcement read:

“Binance Nigeria Limited is neither registered nor regulated by the Commission and its operations in Nigeria are therefore illegal. Any member of the investing public dealing with the entity is doing so at his/her own risk.”

Key Region Lost

The Nigerian government has banned financial institutions from processing cryptocurrency transactions. However, in terms of crypto adoption, Nigeria is still among the world’s top countries, and its peer-to-peer trading platforms process more crypto transactions than any other outside the United States.

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The SEC has warned Nigerians to stay away from cryptocurrency and any financial services connected to it because of the high risk involved. This move was made after the Finance Act 2023 was passed in Nigeria, which imposes a 10% capital gains tax on cryptocurrencies and other digital assets.

Awaiting Clear Regulations

Moreover, on Monday, the US Securities and Exchange Commission (SEC) filed 13 charges against Binance, Binance.US, and Changpeng Zhao (CZ). The cryptocurrency market was thrown into disarray as a consequence of the widespread fear of doing business with Binance U.S.

Its tough time for Binance and the crypto sector as a whole. Especially until a clear regulatory framework is established.