Nigerian SEC Continues Crackdown on Crypto Exchanges

Binance Nigeria
Summary: The Nigerian SEC issued a notice urging crypto platform providers to stop reaching Nigerians. The warning emphasizes the volatility and lack of institutional support for cryptocurrency investments, urging investors to exercise prudence and disregarded products from companies not registered with the Commission.

Nigerian regulators have yet again gone after crypto exchanges in the nation. Binance’s activities were deemed unlawful by the Nigerian SEC last month. On Friday, July 28, the SEC issued a notice telling crypto platform providers to stop reaching out to people in Nigeria.

Although Binance has previously indicated that Binance Nigeria Ltd. is not affiliated with them, the SEC has reiterated its earlier warning against the firm.

Public Warning Issued

However, the crypto exchange’s website was expressly cited by the SEC in the current notification. The Nigerian SEC, the country’s primary regulator for protecting investors, has issued a public warning about the extreme volatility and lack of institutional support for cryptocurrency investments. They stress the potential for a complete loss of capital in such circumstances.

In addition, the Commission stresses the need of exercising prudence while investing in cryptocurrency. Products from companies not registered with or controlled by the Commission should be disregarded.

Firm Stance

Nigeria has adopted a very firm stance against public cryptocurrency exchanges. The SEC made it quite clear last year that it treats all cryptocurrencies as securities. The nation has been testing out the process of reviewing applications to register cryptocurrency exchanges.

However, they have temporarily halted the registration procedure until the SEC and the central bank can come to an agreement. Since the central bank has taken its present attitude, no local banks will work with crypto service providers.

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Haris Rauf