The Binance Nigeria Limited Circular on its Activities

The popular cryptocurrency trading platform Binance Nigeria Limited has been the subject of a circular from the Securities and Trading Commission (SEC) that addresses its operations.
The circular emphasizes that because Binance Nigeria Limited is neither registered with nor subject to the Commission's regulation, it is operating illegally in Nigeria.
Any person dealing with Binance Nigeria Limited does so at their own risk, the SEC underscores as the regulatory authority in charge of protecting investor interests. Concerns regarding the safety and security of investments made through the platform are raised by the requirement for registration and regulation.
The Commission also advises Nigerians to use prudence when purchasing financial products and services related to cryptocurrencies and other digital assets. It emphasizes that if a service provider or platform is not registered with or subject to regulation by the Commission, investors should exercise caution before committing their money to it.

The SEC cautions that investing in crypto assets entails serious risks and could result in a total loss of capital.
By the circular, Binance Nigeria Limited is required to stop all forms of solicitation aimed at Nigerian investors right away. The Commission has also given the public its word that it will keep them informed of any additional regulatory measures involving Binance Nigeria Limited and other platforms of a like nature.
This is not the first time that Binance and the SEC have clashed. A complaint against Binance was recently issued by the U.S. Securities and Exchange Commission (SEC), which claimed that Binance and its partner BAM Trading functioned as an unregistered securities exchange, broker-dealer, and clearing agency. Binance allegedly offered unregistered securities, including its native coins BNB and BUSD, according to the SEC.
Coinbase has also been sued by the SEC for breaking regulations governing the services it has sold as securities.
To protect the interests of Nigerian investors and encourage a secure investment, the SEC intervened in Binance Nigeria Limited. Nigerians are urged to use caution while dealing with crypto-assets and related services and to keep up with the regulatory environment.