The Nigerian Securities and Exchange Commission (SEC) has once again emphasized that Binance, one of the world’s largest cryptocurrency exchanges, is operating illegally within the country. The SEC issued a warning in a recent statement reiterating the fact that Binance’s activities are not registered or regulated by the Commission. This follows a previous declaration by the Nigerian SEC in June, declaring the operations of Binance Nigeria Limited as illegal.
The Nigerian SEC specifically mentioned Binance’s official website in its statement, making it clear that the platform and any other similar platform that solicits investors are operating illegally in Nigeria. The Commission emphasized that Binance’s operations within the country are neither registered nor regulated, meaning that the exchange is not in compliance with Nigerian financial regulations.
So far, Binance has not responded to the SEC’s warning or any queries from media outlets seeking further clarification. Despite the regulatory warning, Binance remains a dominant player in Nigeria’s crypto market. The collapse of FTX has further solidified Binance’s position, and its USDT/Naira trading pair has recorded significant trading volume, reaching close to $500,000 in the last 24 hours. This indicates that Binance continues to attract Nigerian investors, even though its operations are deemed illegal by the regulatory authorities.
Recent Regulatory Approval in Dubai
While facing regulatory hurdles in Europe, Binance has recently obtained regulatory approval in Dubai. The exchange announced that it has become the first digital asset exchange to receive an Operational Minimum Viable Product (MVP) license in the region. This license permits Binance to conduct trading activities in Dubai. However, it is worth noting that Binance has been experiencing setbacks in Europe, resulting in its exit from several markets, such as the Netherlands, Cyprus, Germany, and the U.K. The exchange has stated its commitment to comply with the upcoming Markets in Crypto Assets (MiCA) regulations to operate in Europe.
Clarification on Binance Nigeria
Binance clarified that the Nigerian SEC’s warning referred to Binance Nigeria Limited, which is an entity unrelated to Binance.com. CEO Changpeng Zhao, popularly known as CZ, confirmed that Binance had issued a cease and desist notice to the unauthorized “scam” entity operating in Nigeria. However, the recent statement from the Nigerian SEC indicates that the Commission maintains its warning about Binance’s operations, further intensifying the regulatory scrutiny faced by the exchange.
The Nigerian Securities and Exchange Commission has reiterated its warning about Binance’s illegal operations within the country. Despite regulatory concerns, Binance continues to have a strong presence in the Nigerian crypto market. The exchange’s recent regulatory approval in Dubai marks a positive development, while its exit from multiple European markets signifies the challenges it faces in meeting regulatory requirements. As the situation evolves, it remains to be seen how Binance will navigate the regulatory landscape and ensure compliance with the respective authorities.