Nigeria’s SEC warns against trading on Binance

The Nigerian Securities and Exchange Commission (SEC) has warned local investors against using one of the world’s largest crypto exchanges, Binance. It refers to the previous circular issued against a fraudulent company illegally using the Binance brand.

On July 28, the SEC issued a warning against investing with Binance. The agency insists that the platform doesn’t have a license to work in the country and that its operation is illegal. It also reminds the public about the high level of risk and potential total loss of investments:

“Any member of the investing public dealing with the entity, making such solicitation is doing so at his/her own risk.” 

In June, the SEC published a circular limiting the activities of Binance Nigeria. The circular represented the same type of warning for investors and platforms as the one it has published now. However, Binance Nigeria was a fraudulent entity without any affiliation with Binance. In response, Binance issued a cease and desist notice to Binance Nigeria.

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Nigeria maintains a cautious stance on the crypto industry despite strongly promoting its central bank digital currency (CBDC). However, since its launch in 2021, adoption rates of the eNaira have fallen below expectations, prompting the central bank to explore several options to drive usage. In July, it upgraded the CBDC system with near-field communication technology, enhancing contactless payments.

From May 2023, the country introduced a 10% tax on gains from the disposal of digital assets, including cryptocurrencies. Local stakeholders called the measure “premature.”

Cointelegraph reached out to Binance for further commentaries on the SEC notice.

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As to Binance and other unregistered platforms, the SEC demands they immediately stop services in the country.