- Binance Nigeria was ordered to cease operations immediately by the local Securities and Exchange Commission.
- Nigeria’s SEC declares Binance’s operations illegal due to a lack of registration and regulation.
- The halt in Binance’s operations follows a US lawsuit and Nigeria’s tough stance on crypto.
In a swift regulatory move, Binance’s Nigerian division has been ordered by the local Securities and Exchange Commission (SEC) to halt its operations immediately. According to a circular released on Friday, Binance Nigeria Limited is neither registered nor regulated by the Commission, and its operations in Nigeria are, therefore, illegal.
This unexpected regulatory action follows closely on the heels of a lawsuit by the US SEC against the world’s largest crypto exchange by market capitalization. The allegations include failure to register as a broker or exchange and offering unregistered securities to the general public.
In Nigeria, a country where banks are prohibited from offering services to crypto platforms, the SEC has previously declared all crypto assets to be securities by default. However, this marks the first major regulatory action against a significant exchange platform in the nation.
The Commission’s decision to halt Binance’s operations promises to send ripples through the crypto landscape and adds an extra layer of complexity to Binance’s global regulatory challenges. The regulator has promised updates on further actions against Binance Nigeria and other similar platforms.
Despite this setback, Binance Nigeria’s potential for a rebound remains high. The resilience demonstrated by the crypto giant in various global regulatory environments signals its willingness to adapt and comply with local norms.
The cease order may momentarily disrupt Binance’s operation, but the enduring strength of its community and its commitment to engaging constructively with regulators offers a strong indication that Binance Nigeria can weather this storm. As the situation continues to unfold, the future of Binance in Nigeria and in the broader African continent will be a space to watch closely.
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