SEC Nigeria Issues Warning Against Investing with Binance; Declares Operations Illegal
Zach Anderson Jul 31, 2023 11:30
SEC Nigeria warned against investing with Binance, declaring its operations in Nigeria illegal. The notice, dated July 26, 2023, urges caution with unregulated crypto-assets.
Binance has been strongly advised against by the Securities and Exchange Commission (SEC) of Nigeria. The Commission ruled that Binance's actions and operations in Nigeria are unlawful in a statement.
The official circular states that the platform for Binance, which can be accessed at www.binance.com, is "neither registered nor regulated by the Commission." The SEC has so warned the investing public in Nigeria that dealing with Binance or any other organization that is making similar solicitations is done at their own risk.
Investments in crypto-assets have a significant degree of risk, according to the Commission, and there is a chance that they might lose all of their value. Investor safety is the SEC's first priority, and it has warned the investing public to exercise caution when purchasing goods and cryptoassets from companies that are not registered with or authorized by the Commission.
The circular also ordered any platform providers conducting such solicitations to "immediately stop soliciting Nigerian investors in any form whatsoever." also regulatory measures pertaining to the operations of such operators and associated platforms would be updated, the Commission also said. It promised to work with other Nigerian regulators to provide more direction in this area.
This warning is issued at a time when cryptocurrency regulations are tightening up throughout the world. The SEC's decision to deem Binance's activities in Nigeria unlawful emphasizes the need of abiding by local laws and the necessity for investors to use care when doing business with unregulated businesses.
The Commission said that "Any member of the investing public dealing with the entity, making such solicitation, is doing so at his/her own risk."
To prevent possible risks and losses, investors and stakeholders are recommended to be informed and follow the rules set out by regulatory authorities.
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